Toshiba's future in doubt after it dives $4.8 billion into red

Japanese Finance Minister Taro Aso takes questions from reporters at the annual meetings of the IMF and World Bank Group in Washingt

The Japanese conglomerate said that there was "substantial doubt about the company's ability to continue as a going concern" after huge losses related to Westinghouse, its U.S. nuclear unit, which filed for Chapter 11 bankruptcy protection in the USA last month.

After twice missing deadlines, Toshiba reported a net loss of 648 billion yen ($5.9 billion) for the quarter ended in December.

As a result of extending the closing of its third-quarter business results, Toshiba said "some time will be required" to compile the final earnings report for FY2016, which it nevertheless intends to announce in mid-May.

"It's likely that the company's financial situation will turn severe" owing to problems at Westinghouse, it said in a Japanese-language statement released with the results.

Toshiba risks being delisted from the New York Stock Exchange and could see losses hit one trillion Yen (around £7 billion), which would be one of the largest company losses in Japanese history.

Toshiba has warned that investment in nuclear power may have been the cause of major losses made by the company. A Tokyo Stock Exchange spokeswoman said the bourse would look into why auditors didn't sign off on Toshiba's results. But the auditors are, in effect, saying that Toshiba may need to undertake a more radical overhaul to ensure its survival.

Troubles at Toshiba continue to mount, despite the firm finally declaring its delayed earning's report.




Representatives for Toshiba and Foxconn did not reply to a request for comment on that report. "Now the question is whether the company can release the full-year statement in time".

Toshiba is selling off billions of dollars of assets to offset losses from its Westinghouse nuclear division in the wake of the Fukushima nuclear disaster.

Kevin Coyne, Unite's national officer for energy, said: "The latest news about the very poor financial health of Toshiba raises further concerns about its involvement in the construction of the Moorside nuclear power station in Cumbria".

It has told Toshiba it has breached its jv obligations with WD to put the business up for sale.

As for the decision to release the earnings report, Tsunakawa said, "There was no prospect for receiving a final decision [from the auditing firm] sanctioning [the report] as appropriate even if [the release] were postponed". Taiwan's Hon Hai Precision Industry Co., South Korea's SK Hynix Inc. and chipmaker Broadcom Ltd. have all submitted preliminary bids for the Toshiba business valued at 2 trillion yen or more, people familiar with the matter have said.

Foxconn Technology Group is reportedly planning to bid up to $27 billion to acquire Toshiba's chip business, according to Bloomberg.

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