Embattled Toshiba 'remains committed' to new nuclear plant in Cumbria

Alicia WestFeb 16, 2017

Toshiba said Tuesday its Chairman Shegenori Shiga was stepping down from his post as the company warned it was set to book multibillion-dollar losses in its USA nuclear business.

Toshiba said it expected to book a 499.9 billion yen ($4.4 billion) net loss for the nine months to December, and a 390 billion yen net loss for the full year.

In its preliminary results, Toshiba said it anticipates a group net loss of 500 billion yen ($4.4 billion) for April-December of past year, including the 712.5 billion yen hit from its nuclear business.

The bombshell announcements capped a manic day during which the company's stock plunged as much as 10% after it missed its own deadline to report earnings.

Last month Toshiba announced it was re-examining its involvement in all nuclear projects outside Japan, including Moorside. The company previously planned to limit the sale to 20 per cent to maintain control.

Embattled Toshiba Corp.is expected to report about ¥500 billion ($4.4 billion) in group net loss for the April to December period as it is expecting a write-down of at least some ¥600 billion at its troubled US nuclear business, sources said Monday.

The company released on Tuesday preliminary financial results on an unaudited basis, which estimated a group net loss of 500 billion yen for the April-December period, mainly incurred by the huge loss from its USA nuclear business.

In December, Toshiba had warned the writedown could reach several billion dollars, triggering a share decline that has erased more than $8 billion in market value.

Said analyst Masahiko Ishino at Tokai Tokyo Securities: "The questions surrounding Toshiba are so numerous, where do you even begin?"

"If we can find the right partner, we want to move in that direction", said Satoshi Tsunakawa, Toshiba's president and CEO.

Westinghouse managers allegedly exerted "inappropriate pressure" on those responsible for reviewing the details of the acquisition at the time.

The delay on a full update comes as it investigates the amount its Westinghouse subsidiary paid for United States construction and nuclear plant specialist CB&I Stone & Webster in 2015.

Japanese industrial giant Toshiba's future may be at stake after it revealed huge financial problems that on Tuesday claimed the company's boss, Shigenori Shiga, who has shouldered the blame and resigned.

The Japanese company Toshiba may have reached the end of the road.

To end litigation over cost overruns, Westinghouse in 2015 made a deal to acquire Stone & Webster, its construction partner on the USA nuclear projects.

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