Shares in Toshiba plunge after report of huge loss
TOKYO: Shares in scandal-hit conglomerate Toshiba plunged more than nine percent on Monday morning following a weekend report that it will likely record a fiscal year net loss of more than $4 billion.
The firm slumped 9.16 percent to 256.6 yen at the end of morning trading in Tokyo, having dived almost 10 percent at one point.
Dealers sold the troubled company after the leading Nikkei business daily said in its Saturday edition that it is expected to report a net loss of 500 billion yen net loss for the year to March.
In a statement, Toshiba said it would hold a board meeting later in the day and discuss “structural reform”, adding that any measures it decides are expected to result in a “significant deficit” for the fiscal year “as indicated in the media reports”. It did not specify a figure.
The 140-year-old company was this year hit by revelations that executives systematically pressured underlings to inflate profits in a years-long scheme to hide poor results.
One of the most damaging accounting scandals to hit Japan in recent years, the case forced an incumbent president and seven other top executives to resign.
Toshiba, which sells everything from rice cookers to nuclear reactors, has admitted it had inflated profits by about $1.2 billion since the 2008 global financial crisis.