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Toshiba shares fell from around 250 yen apiece to 186 yen by the end of Monday

February 21, 2017 12:00 pm JST

……..The 21st century has brought new challenges. Toshiba logged a net loss of 254 billion yen after the information technology bubble burst. The financial crisis put the manufacturer 398.8 billion yen in the red, and the accounting scandal gave rise to a 460 billion yen loss. Each time, the company managed a recovery by selling off operations such as liquid crystal display panels, medical equipment and dynamic random-access memory chips, known as DRAM.

Now, amid the fourth crisis of this century, onlookers seem less willing to cut Toshiba slack. The earnings delay and plunge into negative net worth have sparked overwhelming selling of Toshiba stock, with the shares falling from around 250 yen apiece to 186 yen by the end of Monday. If the company ends the fiscal year with net worth below zero, it will drop from the Tokyo Stock Exchange’s first section to its second section.

“Are corporate governance measures actually functioning?” Kazutoshi Inano, chairman of the Japan Securities Dealers Association, asked Wednesday. Sources at the TSE called the reporting delay “routine.”

Toshiba sees the need to relinquish control of memory operations to escape the latest pinch, and will begin anew negotiating the sale.

“Don’t be discouraged — keep doing your best,” Tsunakawa told employees in a broadcast on the evening of the 14th. “We’ll do all that we can.”…….

(Nikkei)

http://asia.nikkei.com/Business/Companies/After-repeated-crises-battered-Toshiba-seeks-another-chance?page=2

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February 21, 2017 - Posted by | Uncategorized

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