Toshiba earnings delayed again amid uncertainty over losses
Annual securities report, due by end of June, could be pushed to fall
TOKYO -- Toshiba will not release results for the fiscal year ended in March until after its annual general shareholders meeting June 28, owing to auditing issues that also could delay a legally mandated securities report beyond its end-of-June deadline.
The trouble meeting its reporting requirements adds more uncertainty to the Japanese group's prospect of remaining listed on the Tokyo Stock Exchange.
Japanese companies are required by law to report earnings at shareholders meetings. But convocation notices must be sent out at least two weeks in advance with all the relevant documentation, which Toshiba said Wednesday that it cannot provide in time. The conglomerate's articles of incorporation state that general shareholders meetings must be held by the end of June each year.
Toshiba said it plans to hold an extraordinary meeting at a later date to brief shareholders on its results.
The delay stems from a dispute with auditing firm PricewaterhouseCoopers Aarata over when Toshiba became aware of losses related to former U.S. nuclear unit Westinghouse Electric, which filed for bankruptcy protection in March. PwC Aarata seeks further investigation, contending that Toshiba may have been aware of the losses further back.
The Chapter 11 bankruptcy filing itself also is slowing the process. Westinghouse looks to firm up a turnaround plan in late July, which will confirm the extent of Toshiba's losses. This will let PwC Aarata kick the auditing process into high gear.
Though Toshiba and its auditor plan to work together to finalize the earnings report, the company still may be unable to submit its annual securities report until around fall, well past the deadline at the end of June.