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Toshiba loss outlook grows amid accounting scandal fallout

Bloomberg

Toshiba Corp. widened its full-year loss forecast as the industrial group cuts jobs and sells businesses to deal with fallout from an accounting scandal at the heart of the biggest crisis in its 140-year history.

The net loss is expected to be ¥710 billion in the fiscal year ending March, Toshiba said in a statement on Thursday. That compares with its earlier forecast for a ¥550 billion shortfall, and the ¥505.5 billion loss average of 10 analysts’ estimates compiled by Bloomberg.

Toshiba is grappling with revelations that management was complicit in padding profits for almost seven years. President Masashi Muromachi is cutting jobs, selling Toshiba’s medical unit and considering a reorganization of its PC and TV operations as the company’s shares near a 35-year low.

“President Muromachi owes us a specific account of where the restructuring is now and where it is heading,” Hiroyasu Nishikawa, an analyst at Iwai Cosmo Securities Co., said before the announcement. “At the moment, it’s rather difficult to trust figures coming out of Toshiba.”