Tokyo: Toshiba Corp. slumped the most in seven months after newspaper reports it would post a record ¥500 billion ($4 billion) loss in the current fiscal year on costs related to an accounting scandal, layoffs and sales of business units.

Shares of the industrial conglomerate fell as much as 9.5%, the most since 11 May, as of 9:39am in Tokyo trading. Toshiba will discuss the impact on earnings of plans it will announce as early as Monday, it said in a statement after media including the Nikkei newspaper reported it would post a loss that includes ¥200 billion in restructuring costs.

Toshiba, which makes everything from nuclear power equipment to laptop computers, flash memory chips and home appliances, may seek to revive profit by narrowing the scope of its business lines. The expected revamp comes after the company mislead investors by filing false financial statements, partly to conceal the waning performance of its personal computer operations, a mainstay within the electronics and power equipment maker’s consumer brands.

“Even if they book a massive loss, that still may not be the end of bad news for the company," Takeo Miyamoto, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co., said in a report Monday. Miyamoto cited the possibility of further impairment losses and worsening conditions in the flash memory industry as smartphone demand slows.

A loss of ¥500 billion would be double the company’s total net income for the previous two decades.

Prior to the media reports on Toshiba’s probable loss this fiscal year, the average of analyst estimates for net income was ¥56.6 billion, compared with a ¥37.8 billion loss the previous year. Among 19 analysts covering the company, four rate it buy, 10 say hold and five say sell.

Promised revamp

Toshiba president Masashi Muromachi is working with new top management after former presidents Hisao Tanaka, Norio Sasaki and Atsutoshi Nishida resigned in July to take responsibility for the accounting irregularities.

Toshiba itself still faces lawsuits from shareholders, while it has vowed to avoid recurrence by bringing in more outside directors and it has cut executive pay. Regulators have yet to announce results of probes seeking evidence for possible criminal prosecutions of former executives.

The company announced the sale of its image-sensor chip operations to Sony Corp. in October and has sold stakes it held in Finnish escalator maker Kone Oyj and Japanese medical equipment manufacturer Topcon Corp.

Toshiba has also said it is considering combining its PC operations with those of Fujitsu Ltd and Sony Corp. spinoff Vaio. It’s also considering a deal with struggling display maker Sharp Corp. to combine washing machine and refrigerator operations.

In September, Muromachi won shareholder approval to lead the company at an extraordinary meeting that included calls for his resignation. Investors angered by damage done to the company interrupted proceedings several times, shouting over the president.

Muromachi in September pledged to prune underperforming businesses, including workforce reductions in appliances, PCs, TVs and semiconductors. Toshiba had about 198,700 employees as of March 31, the lowest since at least 2009, according to data compiled by Bloomberg. Bloomberg