Toshiba is suffering huge losses

Japanese conglomerate Toshiba announced the doubling of damages, which was the highest in company history.

However, the manufacturer hopes to return to profit this year.

In the 12-month reporting period ended March 31, 2017, a net loss of Toshiba reached a record 950 billion yen (8.4 billion dollars) against 460 billion yen ($4.1 billion) cash losses the company informed.

At the end of 2016, Toshiba warned about writing off several billion dollars in subsidiary of Westinghouse Electric (working in the field of nuclear energy) in connection with cost overruns in some projects in USA.

Large write-off has meant that equity to Toshiba, who after an accounting scandal has dwindled to a mere 3 billion dollars, it became negative by the end of last year. It threatens the departure of the company with the Tokyo stock exchange and financial problems. President of Toshiba tsunakawa of Satoshi (Satoshi Tsunakawa) has stated that the company will do everything possible to avoid exclusion of shares from trading.

According to Toshiba, by the end of March 2017, the company’s equity capital remained deeply negative at 540 billion yen (4.8 billion dollars).

Toshiba to clarify that the published financial figures are forecast, not the final results, because they were not approved by the auditors.

In the current reporting year, Toshiba forecast a net profit of 50 billion yen (440 million dollars). This figure does not included expected revenues from the planned sale of semiconductor business and controlled by the Swiss manufacturer of meters Landis+Gyr. These assets Toshiba expects to get out of the financial crisis, said Reuters.

Meanwhile, Toshiba announced plans to transfer some of its assets in corporate communications canadian company Mitel. The financial side is not disclosed.

With regard to the semiconductor assets, the Toshiba had originally planned to make a deal and raise funds until the end of March 2017, but now are referred to as other terms – June. The Corporation was going to sell a small part of the business to produce memory chips, but then agreed to sell the controlling interest due to huge financial problems.

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