Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Toshiba shares fall 5 percent on possible new earnings mark-down

Published 06/07/2015, 01:20
Updated 06/07/2015, 01:24
© Reuters.  Toshiba shares fall 5 percent on possible new earnings mark-down
JP225
-
6502
-

TOKYO (Reuters) - Shares in Japan's Toshiba Corp (T:6502) fell 5 percent in early Monday trade on fears that an ongoing third-party investigation into past accounting practices was finding more irregularities than previously expected.

A source familiar with the matter said on Saturday that Toshiba may need to mark down past earnings by over 100 billion yen (525 million pounds), more than double earlier estimates.

The Nikkei business daily reported that the newly discovered errors, related to computer parts procurement, could see an earnings mark down of around 150 billion yen.

In a statement on Saturday, Toshiba said it had no information to disclose now, citing the ongoing investigation.

Shares of Toshiba, whose businesses range from laptop computers to nuclear power plants, fell to as low as 402.0 yen in early trade, or down 22 percent since the company disclosed the internal investigation in early April. The Nikkei average (N225) was down 1.3 percent.

Toshiba has not been able to close its books for the year that ended in March due to the probe. It has also skipped its year-end dividend to shareholders.

The investigation had previously found inappropriate bookkeeping in areas such as highway electronic toll collection systems, power meters and semiconductors likely led to profits being overstated by nearly 55 billion yen in recent years.

The company has said irregularities found so far included not booking appropriate losses and expenses, as well as underestimating material costs.

The investigation is expected to conclude in mid-July.

The accounting probe is Toshiba's second in less then two years. In October 2013, it announced that it found its medical subsidiary, Toshiba Medical information Systems, had overstated results for several years.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.