Toshiba tanks after revising overstated profits

 
Madeline Ratcliffe
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New Toshiba boss Massah Muromachi
TOSHIBA yesterday announced again its twice-posted results yesterday, citing a net loss of ¥37.8bn (£209.3m).

The reporting was postponed twice after the company first admitted it had overstated its profits in April, and then in May announced it was expanding the investigation into its accounting. Toshiba now says it overstated its profits by ¥200bn over a seven-year period.

The beleaguered technology company had forecast profit of ¥120m back in May.

There has already been a management shake up over the summer. New chief executive, Masashi Muromachi promised further restructuring by the end of the year, including the inclusion of outside directors on its board, which is due to be approved at an extraordinary shareholders meeting on 30 September.

The company announced large write-downs in units, including nuclear power plants, semiconductors and home appliances, but said it did not see the need for a write down on its Westinghouse nuclear power company in the US, which was widely expected.

It said the US economy has “lost some momentum”, but added the UK “had witnessed a strong performance”.

Shares rose by as much as 3.5 per cent and eventually closed up 1.8 per cent following the earnings report.