Shares in Japanese amassed Toshiba have fallen more than 7% as the firm asked to postpone reporting its earnings for the second time. Toshiba’s chairman stepped down and the firm delayed the results over disagreements with its auditors in February. Last month, the firm announced a 712.5 billion yen ($6.3bn; £5bn) writedown due to some US nuclear assets being worth far less than estimated. The situation has allowed some analysts to warn the company’s future is at risk.
The appeal for a second extension on filing its third-quarter earnings underscores the deepening woes for the troubled conglomerate. The extension still requires regulatory approval. Failure to obtain that will mean Toshiba has to submit earnings by 27 March or face delisting from the stock exchange.
Toshiba shares have lost more than half of their value after the announcement made on 16th December. To offset the upcoming writedown, Toshiba is also rushing to sell most or even all of its prized memory chip business, which it values at at least $13 billion. After Samsung, the company is the second largest chip maker in the world. Toshiba is also still trying hard to recover after it emerged in 2015 that profits had been overstated for seven years, prompting the chief executive to resign.
While often still associated with its technology products, Toshiba has become a differing conglomerate. Its nuclear services business brings in about a third of its revenue. Yet that side of the business has not made a profit since 2013 and nuclear services globally are trying hard since the Fukushima disaster in 2011. Toshiba had initially alerted investors in December 2016 that it faced a heavy one-off loss linked to a deal done by its US nuclear subsidiary, Westinghouse Electric.
Assets that it took on are likely to be worth less than initially thought and there is also a dispute about payments that are due. Requesting approval for the new delay, Toshiba said some US senior managers had exerted “inappropriate pressure” in the accounting for an acquisition of a nuclear plant construction company.