• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About Strata-gee
  • Contact Us
  • Free Newsletter
  • Sponsor Strata-gee
  • Privacy Policy
  • Latest Posts
  • Strategy
  • Technology
  • Products
  • People
  • Statistics
  • Financial
  • Legal
  • Economic Data
  • Shows & Events

Strata-gee.com

Strategy in TECH...

AudioControl Single Zone Amps
You are here: Home / Asian Connection / Sources Say Toshiba May Write-Down Profits in Past 3-Years of Financials

Sources Say Toshiba May Write-Down Profits in Past 3-Years of Financials

May 20, 2015 by Ted Leave a Comment

Toshiba LogoLast month, Toshiba Corp. warned the financial markets in Japan that they were launching an internal investigation into “possible problems” with its accounting. The stock exchange’s reaction to the announcement was swift, with the company’s stock price having its biggest one-day drop in value in more than a year. Now unnamed sources are telling the media that the company will have to restate its profits…for a three-year period.

See how hard Toshiba’s profits will be hit…



The media in Japan are quoting unnamed sources who are saying that the company is beginning to get its arms around an accounting irregularity issue that will force it to write down its operating profits by a significant amount. When we first reported this story, all the company said was that it had reason to believe that the issue was related to its profit forecasting system and it was creating a “special investigations team” to look into the issue.

Now, according to a report in the Nikkei, the sources say that company has confirmed an issue and will likely write down its operating profits for a three-year period ending with fiscal year 2013. (The company will report fiscal 2014 next month.) The current estimate of the size of the problem is that the operating profit write-down will be around ¥50 billion ($414 million).

Sonance James Small Aperture

Large enough to be painful, but not destabilize…

Toshiba nuclear plantA write-down of ¥50 billion is certainly large – but for a conglomerate the size of Toshiba, this amount works out to about 10% of its overall combined operating profit of ¥691.7 billion. However, this may not be the end of the situation.

According to the sources, the company has discovered that three of its business units were incorrectly forecasting material costs for ongoing projects. Because of this, the company ended up with, in some cases. losses on these projects.

Expanding the investigation…



Now we learn that the company plans on expanding the scope to its other business units. In order to do so, they will create an external team of “independent experts” who will investigate other business units and other subsidiaries. It would appear that the company suspects there may be more issues to deal with.

This external committee will “comb expense and reserve records for any irregularities” the report says. The company can not say at this time if they will be forced to have further write-downs against past financial reports.

Crestron Infra-bass

This news is the first time since the original announcement of possible accounting problems, that sources have had specific numbers apparently generated by the investigating committee.


Share this post:

  • Tweet
  • Click to share on Reddit (Opens in new window) Reddit
  • More
  • Click to email a link to a friend (Opens in new window) Email
  • Click to print (Opens in new window) Print

Like this:

Like Loading...

Related

Filed Under: Asian Connection, Brands, Financial, Manufacturers Tagged With: Toshiba

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search

Sign-Up for Our FREE Newsletter

loader

Latest Posts

T-Day+1: Tariffs…And So It Begins…

**UPDATED 5/22/25** - See a Selection of Tariff Increases from Around the … [Read More...] about T-Day+1: Tariffs…And So It Begins…

In Its Boldest Move Yet, AVPro Global Acquires Control Solutions Maker RTI

We got a blockbuster announcement late this afternoon as AVPro Global announced … [Read More...] about In Its Boldest Move Yet, AVPro Global Acquires Control Solutions Maker RTI

  • T-Day+1: Tariffs…And So It Begins…
  • ‘Legendary’ Judge Alsup Featured in Strata-gee May Go ‘Inactive’ in 2025
  • Masimo Updates SEC on Its Progress Recovering From Recent Cyberattack
  • Harman Hits Voxx Int’l & Klipsch Group with Major 13-Count Lawsuit

Categories

Sponsors

Crestron Infra-Bass
AudioControl Single Zone Amps
Sonance James Small Aperture
Savant
Oasys Residential Technology Group

Tag Cloud

acquisition Amazon Apple AudioControl B&W Bowers & Wilkins CEDIA CEDIA Expo CES Control4 Core Brands COVID-19 Crestron D&M Holdings Denon Emerald Expositions Foxconn Gibson Brands Gibson Guitar Google Henry Juszkiewicz Hon Hai Precision Industry Co. housing starts Integra Joe Kiani LG Marantz Masimo Nortek OLED Onkyo Panasonic patent infringement Pioneer Samsung Savant Sharp smart home SnapAV Snap One Sonos Sony Sound United SpeakerCraft Toshiba

Footer

Got News?

HEY PR & Marketing Pros: Have NEWS for Strata-gee readers?

Send it to: HotNews@strata-gee.com

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Sponsor Strata-gee

Strata-gee Ads

Archives

Translate

Ted Green Bio

A former dealer, manufacturer, distributor & more. Focusing on business strategy, my goal is to help you make better decisions for greater success.

Follow Ted Green

  • Facebook
  • X
  • LinkedIn
  • Instagram

Copyright © 2025 Strata-gee.com · The Stratecon Group, Inc. All Rights Reserved · Log in

%d