Toshiba is announcing a big write-down amid loss in nuclear dept.
February 13, 2017 – Investors anxiously are waiting for the announcement about Toshiba’s write-down and its details. Sources familiar with Toshiba’s situation said that the write-down could be as much as six billion US dollars. The multinational conglomerate has been facing a tough time in recent years. Not long ago, a major accounting scandal was uncovered, as a result of which, price of Toshiba’s share went down the hill.
This accounting scandal not just uncovered irregularities in the company’s annual report, but it also showed how the company was manipulating annual profit figures in order to keep the shareholders happy. Toshiba’s annual profits were inflated by more than a billion dollars! This kind of deceptive tactics usually work for some time, but the truth does come out sooner or later. In Toshiba’s case, it came out in the form of the Accounting-Scandal. Many investors lost their confidence in the company and the share price fell considerably.
Founded in 1938, Toshiba Corp. is one of the biggest electronic companies in the word. The company is making many consumer products including Laptops and Televisions. Thanks to the rise in Smart Phones usage, the company is making tons of money from its semiconductor and flash memory departments. Some news reports suggest that Toshiba is in talks with some potential flash memory buyers in a deal that could raise more than a billion US dollars. At this point, not many details are available regarding this deal; perhaps tomorrow’s press conference will shed some light on this matter. Toshiba has more than 200,000 employees working in different nations across the globe. The company is too big to fail, but tomorrow’s write-down details might make its shares plunge down one more time.
“Toshiba wants investors to know that they are doing everything in their power to make things right. The accounting scandal has left some deep scars and the company needs to do a lot if it wants to win back some trust. Investors will love to hear about any plans Toshiba has to minimize losses that are coming from its Nuclear Arm/Department. Analysts have been criticizing the way Toshiba invested millions of dollars in worthless nuclear power generation companies in USA. The company is making foolish investment decisions, so you can’t really blame investors/traders for not trusting them anymore. Tomorrow’s announcement about their future plans and write-down details are very important, especially if you are in possession of Toshiba shar,” said Latif Kosa, an editor for Sunday Times magazine.
Toshiba is inches away from a financial crisis. If they don’t get their business straight now, then the company’s future is looking very dark.