Embattled Japanese conglomerate Toshiba (TOSBF 1.98, -0.14) has been in the news recently as investors ponder the company's future in the face of persistent headwinds.
To recap, Toshiba saw its share price cut in half at the end of 2016 after revealing a $6.30 billion write-down in its Westinghouse Electric unit associated with cost overruns at four nuclear reactors under construction in Southeastern United States. This revelation followed an accounting scandal that was uncovered in 2015.
With the situation at Westinghouse exerting significant pressure on the overall holding company, Toshiba has been looking for ways to raise funds. The company already sold its medical unit to Canon for $5.90 billion and it is currently looking to sell its chip unit. Foxconn has reportedly offered $27 billion for that business, and while the transaction would improve Toshiba's capital position, it would remove a high-growth unit from the company's portfolio.
Following the Westinghouse write-down, Toshiba was forced to delay the release of its quarterly report on two occasions. The company released its results for the April-December period today, but the report was unaudited. Toshiba reported a loss of JPY532 billion or $4.80 billion and noted that there is substantial doubt about the company's ability to continue operating.
Toshiba was founded in 1939 and has vowed to make every effort to avoid being delisted by the Tokyo Stock Exchange due to the ongoing struggles.