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Scandal-hit Toshiba discloses additional profit padding from 2010

Kyodo

Toshiba Corp. said Tuesday it had overstated profits by ¥5.8 billion from fiscal 2010, an additional finding in a massive accounting scandal that has forced the company to restructure its businesses.

Toshiba also said it will release its business plan for fiscal 2016 starting next month on Friday. The Japanese firm is also expected to announce plans to sell its medical equipment and white goods businesses.

Toshiba has made downward revisions to its past financial statements, totaling ¥5.8 billion on a pretax basis from fiscal 2010 to 2014, in addition to ¥224.8 billion previously exposed over nearly seven years from fiscal 2008.

Profits were overstated at its information systems division and other units. Executives related to the units will return part of their pay while 40 employees were punished for the latest finding, the company said.

Toshiba President Masashi Muromachi is scheduled to hold a news conference Friday to unveil a business plan for the upcoming fiscal year that will focus on measures to mitigate the impact from the scandal on its earnings.

Toshiba is in final talks with Chinese major home appliance manufacturer Midea Group to sell a majority stake in its white goods subsidiary Toshiba Lifestyle Products & Services for tens of billions of yen, sources close to the matter said.

The Japanese firm was also negotiating with Arcelik A.S. of Turkey, but Midea has apparently made a more favorable offer, the sources said.

Toshiba said last week it had granted Canon Inc. exclusive negotiating rights to buy Toshiba Medical Systems Corp. after an auction.

Canon offered more than ¥700 billion to purchase the maker of magnetic resonance imaging and X-ray systems, according to sources.