Toshiba Seeking to Push Back Tuesday Deadline on Earnings ReportBy and
The company had until the end of the day on Tuesday to file
It missed earlier deadline citing nuclear unit losses
Toshiba Corp. is seeking to extend a deadline on Tuesday to report results amid uncertainties over the evaluation of its Westinghouse nuclear unit, people with knowledge of the matter said.
The electronics conglomerate, which had already extended the deadline by a month following a chaotic preliminary earnings release, is struggling to get its auditor’s approval because of the uncertainty, the people said late on Monday, asking not to be identified because the details are private. Toshiba has already informed banks that a report by the deadline would be difficult, the people said. The company’s shares were unchanged in Tokyo on Tuesday.
Toshiba said on Feb. 14 that it expects to book a 712.5 billion yen ($6.2 billion) writedown in its nuclear-power business, citing cost overruns at a U.S. unit and diminishing prospects for its atomic-energy operations. The company also said Westinghouse exerted “inappropriate pressure” to push through an acquisition of a U.S. construction firm specializing in building atomic plants, the deal that sparked the review. Toshiba is applying for a one-month extension with authorities, one of the people said. If the application is rejected, the company has until March 27 to submit earnings to the Tokyo Stock Exchange or face delisting.
Toshiba is expected to hold a news conference on Tuesday to explain the current situation, the people said. The delay was earlier reported by Kyodo News. Yu Takase, a spokeswoman at Toshiba, declined to comment.
Toshiba has missed financial filing deadlines before. The Tokyo-based company pushed back its earnings announcement twice amid a profit-padding scandal in 2015, delaying the release by about four months. PricewaterhouseCoopers later took as Toshiba’s auditor from Ernst & Young ShinNihon, which was ordered to pay a fine of about 2 billion yen by Japan’s Financial Services Agency.
Toshiba is reeling from the multibillion-dollar writedown of its nuclear power business, with the company considering the sale of a majority stake in its prized memory chip business to help restore its finances.
While most of the figures for the nine months through December were already reported on a preliminary basis in February, the final auditor-approved release is critical for Toshiba to remain listed on the Tokyo Stock Exchange, Akira Kiyota, chief executive officer of Japan Exchange Group said on Feb. 27. Last week, Finance Minister Taro Aso said at a briefing that he sees chances of Toshiba missing the the deadline unless the company makes a decision on whether to file Chapter 11 bankruptcy for Westinghouse this month.
Westinghouse appears to be assembling a team of lawyers and advisers. Westinghouse has hired PJT Partners Inc. to help advise the U.S. nuclear plant developer to restructure its business, people with knowledge of the matter have said.