Toshiba shares dive after second earnings extension sought
Shares of Toshiba Corp fell 5 percent after sources said the electronics conglomerate was seeking an extension of its Tuesday deadline for submitting official third-quarter earnings as its auditors have not agreed to sign off on them.
The extension would be the second after Toshiba postponed it a month ago to probe potential problems at Westinghouse. In early trading, Toshiba shares fell 4.8 percent to 204.6 yen, against the broader market`s 0.2 percent decline.
Toshiba is in talks with financial regulators for an extension, one of the sources told Reuters on Monday. The sources declined to be identified as they are not authorised to speak to media.
It was not immediately clear what the disagreements with auditors were.
A source said Toshiba is seeking a one-month extension and it should be enough to work out differences with auditors.
"I understand auditors` skittishness but at the same time I don`t think they want to be the reason for Toshiba`s failure by keeping refusing to sign off," he said.
Chief Executive Satoshi Tsunakawa is expected to hold a news conference later Wednesday to explain the extension, one of the sources said.
Toshiba is also due to submit this week a report to the Tokyo Stock Exchange on its internal controls in the wake of its latest financial woes as well the 2015 accounting scandal. That could eventually also lead to a delisting if the bourse finds Toshiba`s efforts unsatisfactory.