Toshiba meets deadline for reporting financial results

22 August 2017

Toshiba Corp reported its earnings results on 10 August, meeting the deadline set after its auditor, Auditor PricewaterhouseCoopers Aarata gave a "qualified opinion" on the financial statements, and reducing of being delisted from the Tokyo Stock Exchange. Toshiba said it has "dedicated itself" to eliminating risk related to the overseas nuclear power business, swiftly recovering and strengthening its financial base and strengthening its organisational management. It posted a net loss of JPY965.7bn ($8.8bn) for the financial year ended 31 March, an improvement of JPY30bn from a revised outlook provided in June, but still more than double the loss of the previous year. Toshiba forecasts a profit for the 2017 financial year, ending 31 March 2018, of JPY230bn, a 59% increase in operating profit to ‎JPY430bn and an increase in sales to ‎JPY4,970bn.

Toshiba noted that Westinghouse Electric Company, its US subsidiaries and Toshiba Nuclear Energy Holdings (UK) Limited, had all filed for Chapter 11 proceedings under the US Bankruptcy Code on 29 March. These filings deconsolidated Westinghouse from Toshiba, starting from the FY2016 full-year business results, and the financial results of Westinghouse are now classified as discontinued operations in Toshiba's consolidated profit and loss statement.

Masayoshi Hirata, Toshiba's representative executive officer and corporate executive vice president, noted changes to the parent company guarantees for Westinghouse. On 27 July, Toshiba and the owners of the project to construct two Westinghouse AP1000 reactors, units 2 and 3 at the VC Summer nuclear power plant in South Carolina, USA, reached agreement on Toshiba's parent company guarantee for fulfilment of the project. The agreed amount is the maximum that Toshiba announced in its revised outlook issued on 23 June. This agreement, along with that reached with the owners of the project to construct two Westinghouse AP1000 reactors, units 3 and 4 at the Vogtle plant in Georgia, eliminates any further risk to Toshiba related to the construction of the reactors.

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