Toshiba shares plunge after forecasting €4.2bn loss

Toshiba shares fell to the lowest in more than six years in Tokyo after forecasting a record 550bn yen (€4.2bn) loss, while Moody’s cut its credit rating two levels into junk territory.
Toshiba shares plunge after forecasting €4.2bn loss

The shares finished down 12% yesterday, their lowest since March 2009.

The Japanese company has lost about $2bn (€1.83bn) of market value over the past two days.

Toshiba has been dogged by an accounting scandal, prompting the company to consider third-party alliances for some units and a restructure of the business that makes TVs and PCs.

It is considering options such as listing the memory chip division or selling a majority stake in a medical equipment unit after restating earnings across seven years.

The projected net loss for this fiscal year includes 260bn yen in taxes because of a reversal of deferred income tax assets.

The forecast doesn’t include possible impairment of goodwill and fixed assets at the company’s nuclear power systems.

Toshiba was cut to Ba2, two levels below investment grade, from Baa3, Moody’s said.

Moody’s questioned Toshiba’s ability to fund an extensive overhaul and cited uncertainty around its ability to improve its operating performance.

More in this section

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up