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Toshiba's survival in doubt after reporting unaudited results

37 Comments
By YURI KAGEYAMA

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37 Comments
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Cue Queen, "Another one bites the dust!"

3 ( +5 / -2 )

Literally a day or two ago the Japanese government was urging people to invest in Toshiba.

The company is beset by scandals and troubles on every side - CLEARLY in no position to keep going - and yet the government is urging people to invest in them. Is this real life?

How much more stubborn can you get? How desperate are they to attempt the obviously foolish, simply in the name of propping up a famous Japanese company simply because it's Japanese? Just let the company die already!

1 ( +3 / -2 )

To be fair to the Japanese government, they weren't asking people to invest in Toshiba, they were asking Japanese companies to bid for Toshiba's profitable computer chip business, which no Japanese company wants to do. Foxconn and, maybe, Apple and Google do.

For a major company to issue a financial report without their outside accountant signing off on it is a sign of something very financially wrong – even regrettable – about Toshiba. I think it's time to say goodbye.

4 ( +5 / -1 )

why sell off the majority stake in the chip unit if it's the only thing generating cashflow? That just makes Toshiba a shell of a company

0 ( +1 / -1 )

what do you mean ?

-1 ( +0 / -1 )

Toshiba is a dying corrupt company who has to reinvent itself to survive. It's glory days are probably done and gone.

0 ( +3 / -3 )

Don't worry, Toshiba! There are Japanese here and even on this thread who blame the US entirely for you covering up financial records, lying to the public in both countries, and going bankrupt, and now this. They'll blame this on everyone else but you, too.

4 ( +5 / -1 )

Refrigerator, microwave, vacuum cleaner, washing machine, iron. All Toshiba. Had some issues with the refrigerator, so it was fixed, parts replaced, no problems under warranty. The service of the washing machine saw the parts replaced for free, even out of warranty. Good experience all round from my perspective. Those saying it’s ‘dead’ or ‘corrupt’, how about all the ordinary people who work for them, that then support their families? They shouldn’t lose their jobs because of poor management.

2 ( +5 / -3 )

Britlover, I agree with you with those working in the company as regular employees with families to support. Although he higher ups hardly tend to think about that seeing as how far and how late long the corruptions has gone on for. The only product I bought that was Toshiba was from its Qosmio laptop range in 2009, it had a high failure rate even after multiple part replacements. I kept clear from the brand since then.

0 ( +1 / -1 )

I just bought a new Toshiba washing machine. I wonder what will happen to the warranty if they go under?

Anyway, I've heard that because they make so many products used in city infrastructure, government buildings, and even the JSDF, the government can't let them go under, or they'd face major issues with maintaining their systems.

0 ( +0 / -0 )

Good bye, going the same way as Sharp. Japan needs to operate in the global economy and not just focus on Japan.

-2 ( +3 / -5 )

Japan needs to operate in the global economy and not just focus on Japan.

I think you will find that buying Westinghouse was Toshiba's attempt to operate in the global economy.

Not especially successful.

3 ( +4 / -1 )

it is quite likely that Toshiba's consumer businesses that you mention above could enter bankruptcy but still survive after being sold to another manufacturer. I doubt they would be liquidated.

0 ( +0 / -0 )

@garymalmgren: buying and operating are two different things.

-4 ( +0 / -4 )

@go:

Japan needs to ‘attempt’ to operate in the global economy

What ARE you going on about? What?

3 ( +4 / -1 )

The problem with Toshiba is you do not know which account book you need to read to understand about the company and it is normal, it is made like this in purpose....seriously, this company seems to be just an opaque corporate pipeline for transferring & distribute public money so it will be saved by the govt, like TEPCO, no doubt about it, it is needed.

0 ( +0 / -0 )

Toshiba is too big to fail in the eyes of J-govt. It employs something like 250 thousand people.It will not go under but it's most profitable business, memory chips, will be sold off. Probably to Foxconn since they offered nearly a trillion yen more than other bidders. The incompetence of their previous and current management is shocking however.

0 ( +0 / -0 )

Whatever the upper management failures, the main thing is that there are companies lined up to buy Toshiba's assets because there is a lot of innovation at the micro-level (high end chips, materials etc.) you don't hear about. Also, remember that the Fukushima #1 was build by General Electric, and #2, #3, and #4 were built by Toshiba and Hitachi based on the GE plans. They requested GE to change the plan and put emergency power above ground away from the ocean, but GE refused for "safety reasons".

0 ( +0 / -0 )

Sharp - Extinct. Toshiba - Soon to be extinct. Panasonic, Hitachi, Fujitsu - Next on line.

Sony, Toyota - Will still be around (I think!)

Maybe due to: Ageing population. Inability to adapt to changing global trends of business. Inablity to learn from several other firm's failure. The Japan govt's inability to bail out any of these firms as it is riddled with a larger burden - Pension funds.

Japan is a very small nation compared to US, China and India. So the rise and fall is bound to be sharp with respect to time.

Only US can bail out Japan now. Just as US helped Japan to rise post WW2 to become worlds second biggest economy in the past.

In fact the Sharp case above is already a very popular test case that is being post mortemed in most of the business schools worldwide.

3 ( +5 / -2 )

I can understand how some Toshiba "fans" would blame the US it's downfall via the failing and debt-ridden costly nuclear power operations, but the fact that they doctored their own books? Nah, that's their fault. Maybe if they were willing to accept the truth of the state of their company, fiscally or otherwise, they could have adapted to it by changing how they managed the company, and could possibly still be thriving now. Too late.

3 ( +5 / -2 )

The Showa paradigm is dead, and Toshiba must follow.

0 ( +2 / -2 )

Good lesson for Toshiba. When you buy foreign businesses or Nuclear Power Plants in America. Make sure you have enough Japanese people to supervise and make sure they have Toshiba's best interests at heart.

-6 ( +1 / -7 )

Any suitor willing to take the risk for Toshiba's NAND memory business will demand overall control, no half way house. It a $14 bn upfront gamble on where governance is crucial to quant value to risk ratio.

The boards deplorable contempt to stakeholders, reporting unaudited results is outrageous. Value can only be realized, striped down after an comprehensive boardroom clear out. It time to send in an experienced team of pest control accountancy specialists.

0 ( +0 / -0 )

Woulda thought they'd come under,"Too big to fail."

2 ( +2 / -0 )

Now am I not only a consumer who avoids Toshiba, but try as much as possible to buy non-Japanese products. Taiwanese and Koreans have taken over the quality and reliable crown that used to be Japan's alone. China isn't far behind.

Japan Inc is finished and 10 years ago on here I predicted Sharp's demise and although I predicted Sony would follow Sharp, it looks like Toshiba will beat them to the loser's post.

Unfortunately a greater percentage of Japanese have been brainwashed to believe that Japanese products are the highest quality. There are even some foreigners here who also hold that believe. The quality has shockingly reduced and this has been going on for many years now. Japanese products look fanciful but don't last.

-3 ( +3 / -6 )

how about all the ordinary people who work for them, that then support their families? They shouldn’t lose their jobs because of poor management.

It's not nice to have your place of employment go down, but it's certainly not the end of the world.

In the short term, there is unemployment insurance etc to support people who have temporarily lost a job.

Longer term, a failed company collapsing has the benefit of unlocking the potential of those productive workers for use in socially beneficial ventures elsewhere. Those people aren't useless, all they need is a positive optimistic attitude and their futures are brighter now than they would be had they kept plodding along at Toshiba.

the government can't let them go under, or they'd face major issues with maintaining their systems.

Other capitalist organizations can pick over the remains of Toshiba if there is any value there. The government would be making (another) big mistake if they don't let this failure fail.

-1 ( +2 / -3 )

Another foreign acquisition by a Japanese company that went sour. coupled with an inability to adjust to new lower cost competition. Toshiba still design and make some great products, but poor management is killing them. might be a buy for the strong nerved - if it turns around somehow (J -government support for a while?) then it could really go up.

0 ( +2 / -2 )

Striker: " I wonder what will happen to the warranty if they go under?"

Whatever company takes over will apologize, but won't cover it. I have a National air-conditioner left over in my building by the previous owner, and despite it being rather new Panasonic says, "There's nothing we can do... we are no longer called "National". You need to buy a new one."

1 ( +4 / -3 )

Toshiba still design and make some great products, but poor management is killing them.

I beg to differ. Had a toshiba laundry machine after 3 years it was vibrating and moving. The rice cooker fared worst just stopped working after a year and a heated debate before they could change it claiming the warranty had expired. Bought a costly high-end iron that too lasted just 2 years.

0 ( +3 / -3 )

Ever had any problems with Toshiba products. Years ago bought a washing machine and fridge still working. I have Toshiba hard drives from 19 years ago which are still being used. Great rice cooker more than 10 years old too.

Japan is a world leader with robots. It also makes the best affordable cameras. 50% of the iPhone parts are made in Japan.Flash memory invented by Japanese, Fujio Masuoka. Some of the best cars and motor bikes. Ship building for bulk grain carriers. The list is long...

4 ( +8 / -4 )

if it turns around somehow (J -government support for a while?) then it could really go up.

I don't pay taxes to the government so that they can gamble my money away for me. Cheers.

1 ( +2 / -1 )

What a incomplete report. Why do not we see the name Pricewaterhouse Coopers, in the article?

The financials are "unaudited", because the accounting firm did not express its opinion. PwC should have expressed either "the financials are appropriate" or "the financials are NOT appropriate". Failure to express professional opinion either way after 3 months and 2 weeks of the closing of the 3rd quarter, which was December 2016, is default on the side of the auditors.

The PwC's failure to express professional opinion is betrayal to the shareholders.

-5 ( +3 / -8 )

The quality and standard of Toshiba products design and technology is second to none, and never been in question.

PwC Aarata has committed close 500 accountancy specialists to the Toshiba ledger. A fifth of that number based locally. This is a business failure strategy at the highest level. After Ernst & Young ShinNihon failed to detect or alert executive of disclosure irregularities leading to financial mismanagement Toshiba was placed on a watch list. What reasoning compelled PwC Aarata not to 'approve' is unusual to say the least.

3 ( +3 / -0 )

The PwC's failure to express professional opinion is betrayal to the shareholders. well considering the J gov is now handing down harsh penalties for accounting irregularities who can blame them. why should they lie for Toshiba just because they pay for their salaries?

3 ( +4 / -1 )

Toshiba employs 200,000 mostly middle class workers who would become indigent if the company collapsed. I hate to say it but if a whale like JAL is too big to fail,...... MASSIVE Govt. bailout in 3,....2,.....1.......

0 ( +0 / -0 )

Is it only me...

I feel/fear that most giant J companies stock is full of hot air awaiting a bursting bubble. Built on cooked books and brown envelopes...... Hope i'm wrong!

0 ( +0 / -0 )

The accounting method in Japanese companies is a joke.

-1 ( +1 / -2 )

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