On April 11, Toshiba Corp. announced its consolidated results for the first nine months of its fiscal year (April-December 2016) and the third quarter of its 2016 fiscal year, October-December 2016, both ending March 31, 2017.
Net sales for the first nine months of FY2016 were down ¥166.6 billion, and the group recorded consolidated operating income loss of ¥576.3 billion. Toshiba noted that almost all business segments except the troubled Nuclear Power Systems recorded improvements as a result of implementing continued emergency measures, including bonus reductions.
In the Retail & Printing Solutions segment, Toshiba reported lower sales and higher operating income, with lower sales resulting from the impact of currency exchange rates, and a major increase in operating income attributed to the Retail business moving into the black.
The earnings report for the period ending December 2016 had been delayed twice prior to the April 11 release, and that version has currently not been approved by its auditor, PricewaterhouseCoopers. Toshiba then stated there was substantial doubt about its ability to continue, which created a frenzy in the news.
Following the earnings announcement and news reports of Toshiba’s struggles, Toshiba America Business Solutions (TABS), which is majority owned by Toshiba Tec Corp. (TTEC), a separate company whose shares are majority owned by Toshiba Corp., sent a letter to its customers, partners and employees. The letter stated, in part:
“TABS and TTEC have just concluded a very successful FY16 with strong results across both the printing and retail business segments worldwide.”
After outlining the many issues with Toshiba Corp., it continued, “Your business partner, Toshiba America Business Solutions Inc. (TABS), while a member of the Toshiba group of companies, is independent both financially and operationally from Toshiba Corporation. As such, the current issues surrounding Toshiba Corporation do not directly affect our ability to service our clients, invest in research and development, or operate our business in the world-class manner to which you are accustomed. … Furthermore, please be assured that TTEC management and its Board of Directors are committed to taking any and all actions needed to insure the protection and sustainability of our business and the well being of our customers, business partners and employees.”