With Auditor's Sign-Off, Toshiba Avoids Delisting -- for Now
Toshiba Corp.'s auditors signed off, belatedly, on its earnings Thursday, meaning the embattled Japanese electronics and nuclear company will likely avert delisting, for now. But the auditors, PriceWaterhouseCoopers Aarata, cautioned about remaining risks in a separate statement.
The approval had not come on schedule because of concerns about Toshiba's money-losing nuclear business in the U.S. Toshiba's U.S. nuclear unit, Westinghouse Electric Co., filed for bankruptcy protection in March.
Reactors that Westinghouse was building in the U.S. were behind schedule, partly because of beefed-up safety regulations following the 2011 Fukushima nuclear disaster. Westinghouse's reactor projects in South Carolina were abandoned earlier this month after the towering costs were weighed.
Toshiba is still mired in legal wrangling with joint venture partner Western Digital of the U.S., which is opposing Toshiba's attempt to sell its computer memory chip business to gain the cash it needs to survive.
Thursday was the deadline for the auditors' approval. It had released preliminary earnings earlier, without the approval, to stave off delisting, though the company was later moved to the Tokyo Stock Exchange's second section from its first section.
Toshiba reported a 965.7 billion yen ($8.8 billion) loss for the fiscal year through March Thursday, worse than the 460 billion yen loss racked up the previous fiscal year, and similar to what it had reported before.
It had earlier warned such losses might balloon to nearly 1 trillion yen ($9 billion), and had given similar figures for the earnings.
Toshiba also reported first quarter earnings Thursday, a return to profit April-June at 50 billion yen ($458 million) after Westinghouse was removed from Toshiba's books.
Toshiba -- whose sprawling business included everything from TV sets to high-speed trains -- still faces the daunting responsibility of keeping under control and decommissioning the Fukushima Dai-ichi nuclear plant. Three reactors there suffered meltdowns after a massive earthquake and tsunami in northeastern Japan in 2011.
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