Toshiba slumps to annual loss on accounting scandal writedowns

[TOKYO] Toshiba Corp posted an annual loss after taking writedowns in an accounting scandal that led to the ouster of its president and two predecessors. Shares rose.

The net loss was 37.8 billion yen (S$452.8 million) in the 12 months ended March, compared with previously reported net income of 50.8 billion yen a year earlier. The company issued revised earnings for three earlier fiscal years and didn't issue dividend or earnings forecasts for the current year.

Adjustments to the company's earnings wiped out net income from Toshiba's businesses, which span nuclear reactors, computer memory chips and laptop computers. The company has revamped its board, apologized to investors and appointed a special committee to try to win back trust and prevent further irregularities.

Shares of Toshiba rose as much as 3.6 per cent to 359 yen as of 9:35 am in Tokyo. The company will hold a extraordinary general meeting on Sept. 30, it said.

The result was posted months later than initially scheduled after scrapping forecasts in May and repeatedly widening an investigation of accounting irregularities.

Toshiba last month had said it expected a net loss for the past year without providing a specific number.

Masashi Muromachi has been named president after the former chairman took the role on an interim basis in July when his predecessor quit.

Toshiba is working to regain investor confidence lost after saying it discovered irregularities in accounting for construction projects. Later it widened the probe to cover the entire company.

BLOOMBERG