Toshiba posts net loss on slumping sales of televisions, personal computers

Toshiba Corp. posted a net loss for the first quarter of 12.3 billion yen (S$143.8 million) for the three months ended June.
Toshiba Corp. posted a net loss for the first quarter of 12.3 billion yen (S$143.8 million) for the three months ended June.PHOTO: REUTERS

TOKYO (BLOOMBERG) - Toshiba Corp. posted a net loss for the first quarter as sales of televisions and personal computers slumped and profit fell at its division that makes chips.

The net loss was 12.3 billion yen (S$143.8 million) for the three months ended June, the Tokyo-based industrial group reported Monday in a statement. Sales were 1.35 trillion yen, the lowest since the quarter ended December 2012.

President Masashi Muromachi this month pledged a "bold restructuring" of its chipmaking and lifestyle divisions after reporting an annual loss and restating six years' worth of earnings. Toshiba is releasing its second earnings report in as many weeks after delaying results amid an accounting scandal.

Separately, the Tokyo Stock Exchange said Toshiba shares would be put on alert starting tomorrow because trust in the company was damaged by the accounting irregularities. The exchange fined Toshiba 91 million yen, Japan Exchange Group Inc., which operates the bourse, said in a statement Monday.

Companies put on alert post are required to submit an improvement report to the exchange before being removed from the list. Olympus Corp. was put on alert after its accounting scandal in 2011.

First-quarter profit for the electronic devices and components segments, which includes chips, fell 13 percent to 35.6 billion yen.

The lifestyle business, which makes personal computers, televisions and appliances, had a 20.7 billion yen operating loss in the quarter, according to the statement.

The company plans an extraordinary general meeting on Sept. 30 and has said it intends to give a forecast for the current fiscal year in October.

On Sept. 7, months after the initially scheduled filing, Toshiba reported a net loss of 37.8 billion yen for the 12 months ended March, compared with revised net income of 60.2 billion yen a year earlier.

Toshiba's chip business has been its most profitable, with the electronic devices and components division accounting for more than 100 percent of operating income in the year ended March 2015. Its lifestyle segment accounted for an operating loss of about 110 billion yen in the year.

The industrial group has set aside 8.4 billion yen to cover possible fines related to the accounting irregularities.

Investigations by the financial regulator into Toshiba's financial records will continue, Japan's Chief Cabinet Secretary Yoshihide Suga said on Sept. 7. The company's failure to provide correct information was "a big problem," he said.

No charges have been filed and the regulator has yet to impose any fines.

Toshiba shares fell 2.1 percent to 314.80 yen Monday in Tokyo. The shares have dropped 39 per cent this year, compared with a 3.9 per cent gain for the Topix index.