Daily Management Review

Earnings, Nuclear Writedown Delayed As Toshiba Says It Is 'Not Ready'


02/14/2017




Earnings, Nuclear Writedown Delayed As Toshiba Says It Is 'Not Ready'
Toshiba Corps’ shares were sent tumbling down sharply and the investors fret over the future of the Japanese conglomerate after the group unexpectedly delayed the release of its quarterly earnings and details of a multi-billion dollar writedown to its nuclear business.
 
On Tuesday, Toshiba had said that was "not ready" and gave no further details about the results in an emailed statement after the Japanese group had said that it would reveal the charge at noon, along with its latest outlook.
 
The delay was due to problems in Toshiba's discussions with auditors, said Kyodo news agency, citing a financial source.
 
"The delay shows that the company is in a mess," said Makoto Kikuchi, chief executive of Myojo Asset Management.
 
"We can assume that the company is not delaying its earnings release for good news. The market speculates that Toshiba will be releasing figures worse than what is being reported already."
 
Toshiba shares fell more than 9 percent to 226.2 yen in early afternoon trading and were already down on the day.
 
With the most actively traded credit default swaps jumping 30 basis points to 357/399 bps, the cost of insuring against a Toshiba credit default climbed. That means to insure $10 million in bonds, it would cost $357,000 to $399,000 per year.
 
A fresh timing for its release has not been given by Toshiba. It would have to seek an earnings deadline extension from regulators beyond Tuesday. For possible delisting, it could be placed under supervision under securities laws rules.
 
As it wrestled with the fallout from its $1.3 billion accounting scandal, the company twice delayed planned earnings releases in 2015.
 
Including the sale of a stake in its memory chip business in Tokyo, Toshiba’s Chief Executive Satoshi Tsunakawa was expected to outline the prospects for Toshiba's nuclear arm and update on efforts to raise capital, and a spokeswoman for the company said it may also push back a planned 1600 (0700GMT) press conference.
 
In December, Toshiba warned of a potential writedown. A sum that would wipe out the group's shareholder equity, the charge will be as high as 700 billion yen ($6.2 billion), sources familiar with the matter say.
 
The TVs-to-construction conglomerate would warn alongside its quarterly earnings that its future is unclear, Japan's Nikkei business daily reported on Tuesday.
 
The newspaper further reported that Korea Electric Power Corp (Kepco) could be sold a an interest in British nuclear venture NuGeneration Ltd by Toshiba to garner more revenues to tide over the crisis. Toshiba was seeking at least a partial exit from the venture, Reuters reported earlier this month.
 
There were no comments from a Toshiba spokesman earlier when asked about the Nikkei report. And since "Toshiba's nuclear business plan has not been crystallized yet", a Kepco spokesman declined to comment.
 
(Source:www.reuters.com) 






Science & Technology

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

Baidu comes up with a self-driving bus

Developing countries are stepping up their own space programs

McAfee: Number of cybercrime attacks skyrocketed

RemoveDebris Mission To Clear Debris Of In Orbit Over Earth

British experts: Online gambling is dangerous

Vodafone Chooses ‘Highly Trafficked Urban’ Space As Its 5G Testing Grounds

Space To Become A Travel Destination By 2022

Dream Of Immortality Can Be Realised By 2045

Predicting A Patient’s Death Might Be Possible With Google’s Machine Learning Tool

World Politics

World & Politics

Germany asks to return € 4 thousand subsidies for the purchase of Tesla

Was Trump's visit to the UK the last straw?

Prime Minister May Could Alter Brexit Strategies, Said Ress-Mogg

Le Maire: The US refused to release France from anti-Iran sanctions

One Belt, One Road is facing difficulties around the world

Qatar to raise $ 4 billion to buy Eurofighter Typhoon jets

The UK sets to turn all cars zero-emission by 2030

Brexit Minister’s Resignation States May’s Brexit Policies Weakening The Country’s Stance