Toshiba medical unit boss fired over accounting fraud

October 30, 2013

Toshiba said Wednesday it had fired a renegade manager for falsely inflating profits at a medical subsidiary, and that the unit's chief executive would quit.

The Japanese engineering conglomerate said the unnamed employee had "overstated numbers and made misstatements" in what it described as "inappropriate" accounting at Toshiba Medical Information Systems.

The false accounting happened over a six-year period starting in 2006, the conglomerate said, adding that it inflated the division's profits by about $100 million in total.

In response, a manager who ordered his underling to fake the financial statements was fired while the unit's and directors have agreed to step down, Toshiba said.

"Toshiba Corporation deeply regrets that such a situation has occurred...and is taking the matter very seriously," it added, saying it would take "preventative measures" to prevent a re-occurence.

However, the vast company said it did not expect the scheme—which saw profits inflated by 9.86 billion yen ($100 million)—to "materially affect its consolidated financial results for the past fiscal years".

The revelation came as Toshiba said its net profit for the six months to September fell 14.4 percent to 21.5 billion yen ($218 million) due to a tax change.

Operating soared 53.7 percent to 105.6 billion yen on sales of 3.04 trillion yen, up 13.2 percent, it added, crediting strong sales of electronic devices and memory chips.

The firm boosted its annual sales forecast by 200 billion yen to 6.3 trillion yen, with a of 100 billion yen.

Explore further: Japan's Toshiba almost trebles first-half earnings forecast

Related Stories

Toshiba returns to black on smartphone chip demand

January 31, 2011

(AP) -- Toshiba Corp. said Monday it returned to the black in the October-December quarter thanks to robust global demand for the flash memory chips used in digital cameras and smartphones.

Japan's Fujitsu hit by third-quarter loss

January 31, 2012

Japanese high-tech giant Fujitsu plunged into a net loss for the three months to December, it said Tuesday, as it slashed its full-year sales and profit forecast.

NEC swings to quarterly net profit

January 31, 2013

Japanese information technology firm NEC said Thursday it had swung to a net profit in the October-December quarter, thanks in part to improved sales in defence systems and mobile networks.

Toshiba swings to profit as devices sell well

July 31, 2013

Japan's Toshiba on Wednesday reported $54 million in net profit for the April-June quarter, reversing a quarterly loss a year earlier, thanks to a weak yen and brisk sales of electronic devices.

Recommended for you

Team develops targeted drug delivery to lung

September 2, 2015

Researchers from Columbia Engineering and Columbia University Medical Center (CUMC) have developed a new method that can target delivery of very small volumes of drugs into the lung. Their approach, in which micro-liters ...

Not another new phone! But Nextbit's Robin is smarter

September 2, 2015

San Francisco-based Nextbit wants you to meet Robin, which they consider as the smarter smartphone. Their premise is that no one is making a smart smartphone; when you get so big it's hard to see the forest through the trees. ...

Team creates functional ultrathin solar cells

August 27, 2015

(Phys.org)—A team of researchers with Johannes Kepler University Linz in Austria has developed an ultrathin solar cell for use in lightweight and flexible applications. In their paper published in the journal Nature Materials, ...

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.