Japanese electronics giant Toshiba has withdrawn its earnings forecast and will not be paying a dividend, citing the initial results of an investigation into accounting irregularities on infrastructure projects which will now be extended
Toshiba’s announcement that it had cancelled its projection for a 120bn yen ($1bn) net profit on sales of 6.7 trillion yen in its latest fiscal year to March saw shares in the company drop 17%.
The news follows a statement in early April in which the company said it was investigating possible accounting problems. These relate to construction projects with under-stated costs, and the investigation so far has included power systems, social infrastructure and community solutions units, Toshiba said.
In its latest statement, Toshiba said the investigation so far had found that losses from the construction work were 'not recorded in a timely manner'.
‘The company expresses its most sincere apologies to our shareholders, investors, and all other stakeholders . . . and will make its best efforts to restore your trust,’ it said.
Toshiba said it was not clear when the investigation would be concluded. It also said it would not be able to report its earnings until at least June, and reported that financial results from fiscal year 2013 and earlier may also have to be re-stated.
