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Toshiba shares slide on renewed earnings delay | Toshiba shares slide on renewed earnings delay |
(about 1 hour later) | |
Shares in Japanese conglomerate Toshiba have fallen more than 7% as the firm asked to postpone reporting its earnings for a second time. | |
In February, Toshiba's chairman stepped down and the firm delayed the results over disagreements with its auditors. | In February, Toshiba's chairman stepped down and the firm delayed the results over disagreements with its auditors. |
Last month, the firm announced a 712.5bn yen ($6.3bn; £5bn) writedown due to some US nuclear assets being worth far less than estimated. | |
The situation has led some analysts to warn the company's future is at risk. | The situation has led some analysts to warn the company's future is at risk. |
The request for a second extension on filing its third-quarter earnings underscores the deepening woes for the troubled conglomerate. | |
The extension still needs regulatory approval. Failure to obtain that will mean Toshiba has to submit earnings by 27 March or face delisting from the stock exchange. | The extension still needs regulatory approval. Failure to obtain that will mean Toshiba has to submit earnings by 27 March or face delisting from the stock exchange. |
Nuclear losses | Nuclear losses |
While often still associated with its technology products, Toshiba has become a diverse conglomerate. Its nuclear services business brings in about a third of its revenue. | While often still associated with its technology products, Toshiba has become a diverse conglomerate. Its nuclear services business brings in about a third of its revenue. |
Yet that side of the business has not made a profit since 2013 and nuclear services globally are struggling since the Fukushima disaster in 2011. | Yet that side of the business has not made a profit since 2013 and nuclear services globally are struggling since the Fukushima disaster in 2011. |
Toshiba had initially alerted investors in December 2016 that it faced a heavy one-off loss linked to a deal done by its US nuclear subsidiary, Westinghouse Electric. | Toshiba had initially alerted investors in December 2016 that it faced a heavy one-off loss linked to a deal done by its US nuclear subsidiary, Westinghouse Electric. |
Assets that it took on are likely to be worth less than initially thought and there is also a dispute about payments that are due. | Assets that it took on are likely to be worth less than initially thought and there is also a dispute about payments that are due. |
Requesting permission for the new delay, Toshiba said some US senior managers had exerted "inappropriate pressure" in the accounting for an acquisition of a nuclear plant construction company. | |
Selling assets | Selling assets |
Since the 16 December announcement, Toshiba shares have lost more than half of their value. | Since the 16 December announcement, Toshiba shares have lost more than half of their value. |
To offset the upcoming writedown, Toshiba is also rushing to sell most or even all its prized memory chip business, which it values at at least $13bn. | To offset the upcoming writedown, Toshiba is also rushing to sell most or even all its prized memory chip business, which it values at at least $13bn. |
The company is the second largest chip maker in the world, behind Samsung. | The company is the second largest chip maker in the world, behind Samsung. |
Toshiba is also still struggling to recover after it emerged in 2015 that profits had been overstated for seven years, prompting the chief executive to resign. | Toshiba is also still struggling to recover after it emerged in 2015 that profits had been overstated for seven years, prompting the chief executive to resign. |