Toshiba Corp swung to a first-quarter loss on weak PC and TV sales, raising pressure on its new chief executive, who is already tasked with improving governance after a $1.3 billion accounting scandal. As Grace Pascoe reports the results come as Japan's economy struggles
Sales slump at Japan's Toshiba. From April-June the company's operating loss totalled almost 11 billion yen - that's around 91 million dollars Hurt by weak demand for consumer electronics. Weakness is a trend echoed in the Japanese economy. NAB's Nick Parsons expects central bank stimulus soon but says it won't have the benefit of surprise that the last move had. (SOUNDBITE) (English) NAB, GLOBAL HEAD OF FX STRATEGY, NICK PARSONS, SAYING: "It did have the impact of boosting dollar/yen and really ramping up the local stock market but to the extent that a similar move is now anticipated, it is now largely expected. I think the risks have shifted somewhat to perhaps expressing disappointment if they don't do it rather than a positive response if they do." Toshiba shares fell 2 percent in Tokyo, ahead of the results. They've tumbled 38 percent since the company first disclosed accounting problems in early April. Last week it said past profits were overstated by 155 billion yen. Amid the scandal it's CEO and several board members quit. Now, new CEO Masashi Muromachi has vowed to improve governance and overhaul weaker operations. But with Japan's economy growing at a slower pace in the current quarter than expected. Toshiba may struggle to revive. Recent financial market turmoil is dragging on the world's third largest economy. BOJ stimulus may be necessary sooner, rather than later to counter weakness in the economy.