Toshiba financials
The main article about the company is Toshiba Corporation.
2020: Revenue - 3.05 trillion yen, profit - 114 billion yen
In fiscal 2020, Toshiba's revenue amounted to 3.05 trillion yen (about $27.5 billion at the exchange rate at the time of publication - May 14, 2021 of the calendar year) against $3.39 trillion yen a year earlier.
Toshiba's core business remains concentrated in Japan. There, the company's revenue at the end of the 12-month period, closed on March 31, 2021, reached 1.78 trillion yen, which is 11% less than a year ago. In the rest of the countries combined, the conglomerate's turnover also decreased - by 8%, to 1.28 trillion yen.
Annual sales in Europe sank the most: in 2020, they amounted to 182.73 billion yen, which is 13% less than a year earlier. In North America, revenue decreased by 7% (to 293.5 billion yen), in Asia excluding Japan - by 5% (to 714.38 billion yen).
In the Energy Systems & Solutions division, annual revenue was 493.2 billion yen, down 13% year-on-year. In the direction of Electronic Devices & Storage Solutions, sales reached 711.34 billion yen, which is 5% less than in 2019.
In the business of producing infrastructure products, there was a 9 percent decline in income, to 670.89 billion yen. Technology sales for buildings decreased by 4%, to 545.18 billion yen. Least of all, judging by the financial parity, Toshiba brings digital solutions - they added about 221.74 billion yen to annual revenue, which is 12% less than in 2019.
Despite the decline in sales, the Japanese corporation was able to get rid of losses by recording a net profit of 114 billion yen ($1 billion). The return of profits was largely because the 2019 financial report included losses from the transfer of the LNG business and investments in memory chip maker Kioxia.
Toshiba's total debt by March 31, 2021 amounted to 517.7 billion yen.[1]
2019: Net losses - ¥114.6 billion
For fiscal year 2019, which ended at the end of March 2020 for Toshiba, the Japanese conglomerate raised 3.39 trillion yen ($31.05 billion), which is 8.2% higher than a year ago due to revenue growth in many divisions.
The corporation's net loss was 114.6 billion yen ($1.05 billion) against the profit of 1.013 trillion yen recorded a year earlier. True, that large profit is associated with a one-time inflow of income - from the sale of a controlling stake in the semiconductor division of Toshiba Memory.
The company suffered losses from the sale of its gas and semiconductor business in fiscal 2019, Toshiba said in a statement. With the exception of special factors, such as restructuring costs and the impact of the COVID-19 pandemic, profits from core operating activities doubled to 161.6 billion yen.
The Energy Systems & Solutions division in 2019 financial year recorded revenue of 568.8 billion yen against 652.7 billion yen a year earlier. In the direction of Infrastructure Systems & Solutions, annual turnover increased from 733.5 to 735 billion yen.
Toshiba's construction business (the Building Solutions division is responsible for it) in fiscal 2019 showed revenue of 570.1 billion yen, which exceeds the one-year-old figure of 733.5 billion yen.
Sales at Retail & Printing Solutions increased year-on-year from 485.4 billion yen to 490.4 billion yen. In the division for the production electronic engineers and devices for data storage sale decreased - from 933 billion yen in the 2018 reporting year to 745.6 billion yen a year later. Another business - Digital Solutions - recorded a slight decrease in revenue for the 2019 fiscal year, it amounted to 252.4 billion yen.Toshiba 2019 Financial Statement
2018: Revenue decline of 6% to 3.69 trillion yen
For the fiscal year, which ended at the end of March 2019, Toshiba's revenue amounted to 3.69 trillion yen ($33.67 billion at the exchange rate as of May 14, 2019), which is 6% less than in the previous year.
The annual turnover in the Toshiba Storage & Electronic Devices Solutions division, specializing in the production of hard drives, rose by 2% and reached 900.9 billion yen. Infrastructure Systems & Solutions recorded a 4 percent rise to 1.29 trillion yen.
The rest of the business turned out to be falling. For example, the Energy Systems & Solutions division showed a 22% decline in annual revenue to 652.7 billion yen. Sales of Industrial ICT Solutions products sank 2% to 253.1 billion yen. Revenue in the Retail & Printing Solutions division decreased by 7% to 485.4 billion yen.
Toshiba pointed out that HDD sales declined over the year due to falling demand for such personal computer devices. This decline could not compensate for the growth in equipment sales for corporate clients.
Toshiba ended the year with a net profit of 1.01 trillion yen ($9.2 billion), which is 26% higher than a year ago. A significant part of the growth in this indicator was provided by the planned sale of the storage device division to Toshiba Memory Corporation.
Toshiba management notes the strong performance of its business in the United States, which was offset by the weakness of European markets due to Brexit uncertainty, as well as lower demand in China due to the trade conflict with the United States.
On May 13, 2019, when the annual reports of the corporation were published, its quotes fell by 0.7%. Since the beginning of the year, they have increased by 15.5%, and the market capitalization has grown to 1.96 trillion yen.[2]
2017
Getting rid of losses for the first time in 4 years
For the fiscal year, the end of which fell on March 31, 2018 calendar, Toshiba's revenue reached 3.95 trillion yen ($36.1 billion at the exchange rate as of May 15, 2018), which is 4% less than a year earlier. Net profit amounted to 804 billion yen (about $7.34 billion), while over the previous three years it recorded losses.
Toshiba returned to profit thanks to the sale of the unprofitable company Westinghouse for $4.6 billion, as well as its debts for $2.16 billion. In addition, the Japanese conglomerate was helped by the listing of Landis + Gyr's subsidiary and a significant reduction in the tax burden.
The decline in sales at Toshiba was attributed to the separation of Landis + Gyr and a drop in revenues in Energy Systems & Solutions and Infrastructure Systems & Solution. In the latter, revenue decreased by 1% to 1.2 trillion yen, and profits decreased to 48 billion yen.
Energy Systems & Solutions saw a 13 percent decline in sales to 844.7 billion yen. The best dynamics was shown by the Industrial ICT Solutions division (IT solutions for industrial enterprises), whose turnover increased by 8%, reaching 258.9 billion yen. In the direction of Storage & Electronic Devices Solutions, revenue amounted to 837.1 billion yen, which is 5% more than a year ago.
It follows from the financial report that by the end of March 2018, Toshiba's share capital increased to 783.1 billion yen, which allowed the company to remove the threat of delisting its shares from the Tokyo Stock Exchange. A year earlier, capital was negative (553 billion yen), which prompted the corporation to sell the semiconductor business.
Toshiba expects that the sale of the memory chip division will add about 970 billion yen to the company's profit, as a result of which net profit for the fiscal year, which ends March 31, 2019, will jump 33% to 1.07 trillion yen.[3]
The strongest drop in stock prices in 20 years (-26% in a few hours)
On January 19, 2017, Toshiba experienced the worst drop in its share prices in more than 20 years after the media reported gigantic losses in one of the divisions of the Japanese conglomerate.
According to the Nikkei newspaper, losses of 500 billion yen ($4.4 billion) were recorded in the American nuclear business Toshiba. News agency Kyodo clarifies that we can talk about losses of 700 billion yen ($6.1 billion).
Toshiba itself did not comment on this information, although in late 2016 the corporation warned of possible write-offs of several billion dollars in a subsidiary of Westinghouse Electric due to cost overruns in nuclear projects in the US states of Georgia and South Carolina. Toshiba promises to name a more accurate amount of losses no later than the publication of the quarterly report, scheduled for February 2017.
Bloomberg reports that news of major losses triggered a 26 percent decline in Toshiba quotes in a few hours, which has never happened since 1974. By the end of the day, January 19, 2017, the shares had regained a slight decline and by the close of the exchange stopped at 242 yen, which is 16% less than it was a day earlier.
According to The Wall Street Journal, by the end of September 2016, Toshiba's net worth was measured at 363 billion yen ($3.2 billion), and profits in October-December (especially in the semiconductor business) could increase this amount. However, losses in the nuclear business negated these revenues and led to negative capital, which could jeopardize the company's placement on the Tokyo Stock Exchange.[4]
In an effort to shore up capital, Toshiba previously sold a number of large assets, including its medical equipment, home appliances and image sensors divisions. NHK reports that the company is also considering the sale of additional assets worth up to 300 billion yen ($2.6 billion).
In addition, in January 2017, Toshiba talked about plans to separate the semiconductor business from itself and, possibly, sell part of it. According to Nikkei, Western Digital claims this asset, which for 200-300 billion yen ($1.77-2.66 billion) can acquire a 20 percent stake in the Toshiba chip division.
Debts of $10 billion and deferment from creditors
On January 10, 2017, it became known that Toshiba asked creditors to postpone the payment of debt, since the company needs money after major losses.
According to Reuters news agency, citing sources familiar with the situation, on January 10, 2016, Toshiba management met with representatives of 80 creditor companies, including employees of regional banks and insurance companies.
During this event, top managers asked creditors not to take funds from reserves that were replenished in case of problems with the payment of debts. At the meeting, Toshiba executives spoke about the upcoming write-offs and the timing during which the company intends to solve the problems that have arisen.
Toshiba confirmed the meeting with creditors to the publication, but refrained from further comment.
At the end of 2016, Toshiba announced the likelihood of writing off several billion dollars due to exceeding costs in the American nuclear company Westinghouse Electric, which the Japanese conglomerate acquired in 2006.
According to Nikkei, in connection with the upcoming cash losses, creditors agreed to provide Toshiba with a deferral to start repaying loans until February 2017. Another meeting of the corporation's management with creditors will take place this month.
As of the end of September 2016, Toshiba's total debt was about 1.2 trillion yen ($10.37 billion). The company's debts began to rise after a financial scandal involving years of overpricing.
After Toshiba warned of write-offs in the nuclear business, the company's shares fell 33% in a few days, and the credit rating was downgraded to a "junk" level, as a result of which the manufacturer was threatened with termination of loans by banks.
Then Toshiba began to consider various options for increasing capital. Among them are the issuance of new shares and the sale of the semiconductor business.[5]
2016: Record losses of $8.3 billion
On May 15, 2017, Toshiba reported a record loss in its history. Financial problems at the end of 2016 are associated with huge write-offs in the nuclear business.
For the 12-month reporting period, which ended on March 31, 2017, Toshiba's net losses reached 950 billion yen ($8.3 billion), twice as much as a year earlier. Revenue fell by almost 6%, amounting to 4.87 trillion yen ($42.5 billion).
At the end of 2016, Toshiba warned of a write-off of several billion dollars in Westinghouse Electric (engaged in the maintenance of nuclear power plants in the United States) due to cost overruns in some nuclear projects, which occurred as a result of the purchase of CB&I Stone & Webster (specializing in nuclear construction services and integrated services). In March 2017, Westinghouse Electric was declared bankrupt.
The financial results announced by Toshiba were not approved by the auditors because they had questions about the purchase of CB&I Stone & Webster. It is worth recalling that the Japanese conglomerate twice postponed the publication of the report for the third financial quarter (October-December 2016) due to disagreements with auditors. As a result, Toshiba also provided unconfirmed data, since the third delay could lead to the termination of exchange trading in the company's shares.
The threat of delisting still remains, since by the end of March 2017 Toshiba has a negative equity - minus 540 billion yen ($4.8 billion). In order to improve its financial situation, the corporation intends to sell the semiconductor business and the controlled Swiss meter manufacturer Landis + Gyr.
Toshiba plans to return to profit at the end of the financial year, which will last until the end of March 2018 calendar. The company expects net income of 50 billion yen ($442 million).[6]
2015: 10-fold loss growth to $4.4 billion
On May 12, 2016, Toshiba released its financial year 2015 performance report. The Japanese conglomerate has recorded multiple increases in losses due to huge restructuring costs launched in the wake of the overpricing scandal.
For the 12-month reporting period ended March 31, 2016, Toshiba's net losses reached 483.2 billion yen ($4.4 billion), more than 10 times the cash losses of a year ago. Operating loss amounted to 719.1 billion yen ($6.6 billion), while a year earlier operating profit was made in the amount of 188.4 billion yen ($1.7 billion).
The corporation's revenue for the year decreased by 15%, amounting to 5.67 trillion yen ($51.9 billion). Analysts surveyed by FactSet expected operating and net losses from the corporation at 440 and 588.8 billion yen on sales of 6.1 trillion yen.
Toshiba's financial decline is associated with a write-off of 260 billion yen ($2.3 billion) in the asset value of the American division of Westinghouse Electric (works in the field of nuclear power) due to increased costs.
Another reason for the fall in the corporation's income was the corporate restructuring, which was launched in connection with the revealed many years of accounting fraud, with the help of which Toshiba's top managers illegally attributed $1.3 billion to the company for non-existent profits. As a result of the scandal, the conglomerate was forced to cut jobs and sell off non-core units.
Analysts believe that Toshiba can successfully recover, but it will be very difficult for it to achieve sustainable growth. The company lacks the money to invest in the fight against Samsung Electronics in the flash memory market, while new orders for nuclear installations remain weak, experts say.
At the end of the fiscal year, which will end in March 2017, Toshiba hopes to return to net profit, expecting it to be 100 billion yen ($915 million), thanks to the work of units responsible for nuclear projects and memory chip production.[7]
2014: Loss of $318 million
On September 7, 2015, Toshiba published its annual financial report. The Japanese company was supposed to publish it back in late April - early May 2015. However, the deadlines were postponed due to the identification of accounting fraud.
In the 2014 fiscal year ended March 31, 2015, Toshiba made a net loss of 37.83 billion yen (about $318 million) against a net profit of 60.24 billion yen ($506 million) a year earlier. Before the financial scandal, the Japanese concern predicted annual profits of 120 billion yen ($1 billion).
In April 2015, Toshiba discovered errors in financial statements and initiated an investigation, which was conducted by a group of independent auditors until August. They found that Toshiba's management deliberately distorted financial performance, which led to an overestimation of profit by 155 billion yen ($1.3 billion) over a seven-year period starting in 2008. This is three times the amount that was talked about in the company itself before the audit began. Profit before tax was overestimated by 225 billion yen ($1.9 billion), follows from the Toshiba report of September 7, 2015.
Toshiba completed fiscal year 2014 with an operating profit of 170 billion yen ($1.4 billion), which is 34% less than a year ago. Sales of the vendor during this period increased by 2.6% to 6.66 trillion yen ($54.8 billion).
After the release of the statements, Toshiba shares rose in price by 4.8%. However, since the publicity of the incident with inaccuracies in the financial results, the manufacturer's quotes have collapsed by a third.
Head of the Shinkin Asset Management Co. Naoki Fujiwara says investors are likely not to buy Toshiba shares as the fallout from the financial scandal is unknown. Perhaps the companies face lawsuits and fines from regulators, Fujiwara said.
On September 30, 2015, Toshiba will hold an extraordinary meeting of shareholders, at which new members of the board of directors will be selected in exchange for top managers fired for fraud with accounting.[8]
2011: Sales decline to $76.3 billion
In the 2011-2012 fiscal year, Toshiba reported a decline in net sales of 298.2 billion yen to 6.1 trillion yen ($76.3 billion) and a profit of 73.7 billion yen ($921.4 million) compared to a loss of 64.1 billion yen in the 2010-2011 fiscal year.
In the 2012-2013 fiscal year, the Japanese manufacturer of electronics, medical equipment and nuclear reactors planned to record a profit of 135 billion yen ($1.7 billion). That's more than independent analysts expected to see, averaging a profit of 127.6 billion yen.
2007: Revenue $76 billion, earnings $1.2 billion (-7%)
The company's revenue in the 2007-2008 fiscal year (ended March 31, 2008) is $76.68 billion, net profit is $1.274 billion (a drop of 7%). The losses were associated with the refusal in February 2008 of further production of HD DVD players and recorders - Toshiba lost in the so-called. Blu-ray technology's "format war."
Notes
- ↑ Financial results, Toshiba
- ↑ Toshiba’s Earnings Release 2018
- ↑ Toshiba Announces Consolidated Results for Fiscal Year 2017
- ↑ Toshiba Shares Plunge on Write-Down Woes
- ↑ Toshiba asks creditors not to call in loans: sources
- ↑ Toshiba Reports Massive Loss for Year Over Westinghouse Woes
- ↑ Toshiba Reports $4.4 Billion Net Loss
- ↑ Toshiba falls into red with Y37.8bn full-year loss
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