Toshiba Updates Forecasts, Deepens Loss

By Tom Allen
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The accounting controversy that rocked Toshiba last year (Toshiba CEO Resigns Over Accounting Scandal) is still plaguing the firm, which has forecast its largest-ever loss for this fiscal year (ending in March): ¥710 billion ($6 billion). This is even higher than the previous forecast of ¥550 billion ($4.5 billion) (Toshiba Forecasts Record Loss).

Toshiba has blamed the predicted loss on restructuring costs: it plans to sell its PC and home appliance businesses, as well as its (profitable) medical arm. Instead, the focus will be on its nuclear power and flash memory divisions.

Revenue in the new forecast was unchanged, at ¥6.2 trillion ($53.2 billion). Operating loss was revised to ¥430 billion ($3.7 billion), from ¥340 billion ($2.9 billion)). In its previous financial year, Toshiba posted a net loss of ¥37.8 billion ($324.2 million).

Analyst Comment

At CES, it seemed to be assumed that the deal for Fujitsu and Toshiba to combine their PC businesses is definite (Fujitsu To Split PC & Phone Businesses). The only question remaining seems to be whether VAIO joins in. (BR)