Known for its televisions and electronics, including the world’s first laptop personal computer and DVD player, Toshiba has a range of other operations including power transmission and medical equipment.
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Toshiba Corp is expected to forecast a record net loss of more than 500 billion yen ($4.13 billion) for the year ending March on restructuring costs, Nikkei reported on its website on Saturday.
The person familiar with Toshiba’s plans said the restructuring plans, which are likely to include asset writedowns and one-time costs for reducing the workforce, are expected to result in a net loss of approximately Yen500 billion for the fiscal year, which ends March 2016.
Toshiba said it had not yet fully calculated the impact of the nuclear disaster on its books.
“The scandal has just sped up the entire process of restructuring, and it’s adding a sense of urgency”, said Bernstein analyst Michael Miles. Miyamoto cited the possibility of further impairment losses and worsening conditions in the flash memory industry as smartphone demand slows.
In fiscal 2014, Toshiba logged a group net loss of ¥37.8 billion. Among 19 analysts covering the company, four rate it buy, 10 say hold and five say sell.
Toshiba itself still faces lawsuits from shareholders, while it has vowed to avoid recurrence by bringing in more outside directors and it has has cut executive pay.
Toshiba, which sells everything from rice cookers to nuclear reactors, has admitted it had inflated profits by about United States dollars 1.2 billion since the 2008 global financial crisis.
Earlier this year, Toshiba said it is selling facilities for making computer chips related to image sensors to Sony Corp. It’s also considering a deal with struggling display maker Sharp Corp.to combine washing machine and refrigerator operations.
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In September, Mr Muromachi won shareholder approval to lead the company at an extraordinary meeting that included calls for his resignation.
