Toshiba predicts record $4.5bn loss


Troubled Toshiba posted a multi-million-dollar annual loss for the year


Troubled Japanese conglomerate Toshiba has said it will report a record 550bn yen ($4.5bn) annual loss as it undergoes a restructuring in the wake of an accounting scandal.

The company, whose activities range from laptops to TVs to nuclear energy, is planning to cut 6,800 jobs.

Also Read  Govt challenges innovators to develop financial products

Investors sold Toshiba shares on Monday, leaving them down 10%.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163

Toshiba’s president and vice-president resigned in July after the firm said it had overstated profits for six years.

Masashi Muromachi took over as chief executive and president from president Hisao Tanaka and vice-chairman Norio Sasaki also resigned in the wake of the scandal.

Also Read  Over 2 million tourists visited Kenya in the last financial year

As part of its restructuring, Toshiba will sell its TV manufacturing plant in Indonesia. It is also looking for investors for its healthcare business.

Also Read  Stanbic Kenya, China partner to ease imports

Toshiba, which was founded in 1875 and launched the world’s first mass-market laptop in 1985, currently employs almost 200,000 people.

It has lost about 40% of its value since news of the profit overstatement began to emerge in April.


Tell Us What You Think