Toshiba delays the release of quarterly earnings

Company - Mohit Shah - Feb 14,2017

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toshiba delays the release of quarterly earnings

Toshiba has surprisingly delayed the release of quarterly earnings along with details of a multi-billion dollar nuclear writedown.

This incident has hampered Toshiba’s shares which dropped sharply lower as investors worry about the conglomerate's future.

Toshiba had announced it would reveal the charge at noon (0300 GMT), in addition to its latest outlook. However, the firm later said in an emailed statement that it was "not ready", providing no further details.

According to Kyodo news agency, the delay in the release of quarterly earnings was due to the difficulties in Toshiba’s negotiations with auditors.

Makoto Kikuchi, chief executive of Myojo Asset Management believes that the delay reveals the company is in a messy situation.

He further added, it can be assumed that the company is not postponing its earnings release for good news. The market also speculates that Toshiba will be releasing statistics “worse than what is being reported already.”

Toshiba shares fell more than 9 percent to 226.2 yen during early afternoon trading.

The Japanese multinational conglomerate has not given a fresh timing for its release. Beyond Tuesday, the firm would have to seek an earnings deadline extension from the regulators. Moreover, it could be placed under supervision on the basis of securities laws rules for possible delisting.

Looking into the past, the company twice postponed planned earnings releases in 2015 as it struggled with the effect from its $1.3 billion accounting scandal.

A company spokeswoman said it may also push back a scheduled 1600 (0700GMT) press conference where Chief Executive Satoshi Tsunakawa was likely to outline the prospects for Toshiba's nuclear segment and inform about efforts to raise capital, plus the sale of a stake in its memory chip business.

According to a news report, Toshiba might also sell an interest in NuGeneration, a British nuclear venture, to Korea Electric Power Corp (Kepco).