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Toshiba pulls earnings forecast, cancels dividend over improper accounting

Staff writer |
After finding improper accounting on infrastructure projects, Toshiba Corp. withdrew its earnings forecasts for last year and said it won’t pay a year-end dividend.

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A third-party committee is being formed to further investigate the matter, the Tokyo-based company said. The company had projected net income of ¥120 billion ($1 billion) on sales of ¥6.7 trillion in the year ending in March. The company won’t report earnings until at least next month, it said.

Toshiba, which makes nuclear reactors, computer memory chips and consumer electronics and controls Westinghouse Electric Co., also said it may have to revise earnings from fiscal year 2013 and earlier.

“Several construction projects have understated costs,” said Aya Oshima, a spokeswoman for Toshiba. “The investigation so far included power systems, social infrastructure and community solutions units.”

The units encompass nuclear, hydroelectric and wind-power equipment, air traffic control and railway systems, and urban infrastructure services that rely on big data.

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