Japanese technology conglomerate Toshiba has reported a full-year net loss of £209 million. It follows the recent accounting scandal, where executives overstated profits made by Toshiba to avoid a downturn in shareholder interest.
The £209 million net loss could have been substantially higher, but Toshiba sold a 4.6 per cent stake in Finnish firm Kone for £620 million. During the accounting scandal, Toshiba overstated profits by £850 million, leading to Japanese investigations.
News of a £200 million net loss is lower than expected, leading to a slight rise in today’s share price. In Tokyo, shares rose to 3.5 per cent, ending on 1.8 per cent rise.
The company noticed low performance in the United States, but showed growth in the United Kingdom, the Eurozone, South-East Asia and India. It also didn’t see a drop in sales in China, despite the economic issues in the country.
Toshiba also said there was no need to lower the valuation of its nuclear operation in the US. The announcement comes after worries the accounting scandal lead to higher valuation on the nuclear deal.
The Japanese conglomerate has thousands of investments and projects happening worldwide, making it hard for shareholders to pinpoint a major success or issue. The lack of growth in the technology market, dropping out of the top five PC manufacturers and top four semiconductor manufacturers, is worrying.
Even more worrying is the lack of investment in mobile, with Qualcomm, MediaTek and Nvidia taking over the component sales in that market. Toshiba doesn’t seem to be focused on mobile at all.