Toshiba seeks to postpone earnings release, will probe Westinghouse

  • Toshiba seeks to postpone earnings release, will probe Westinghouse

Toshiba seeks to postpone earnings release, will probe Westinghouse

Shiga is taking "management responsibility" for the company's loss due to the goodwill and impairment cost it would record in relation to Westinghouse's acquisition of CB&I Stone and Webster, Toshiba said.

Toshiba claimed "we need further research on the internal reporting ... and its impact on financial results" regarding its acquisition of a major contractor responsible for the construction of several nuclear power plants in the US.

Meanwhile, AFP has reported that Satoshi Tsunakawa, chairman, president and CEO of Toshiba, has quit.

He bowed deeply at a news conference to apologize for "troubling investors and stakeholders".

After the market closed, it released unaudited numbers, warning they may change "by a wide margin".

Toshiba chairman Shigenori Shiga will step down to take responsibility for the losses in connection with its U.S. nuclear business acquisition, while other executives, including president Satoshi Tsunakawa, will take pay cuts, the company said in a statement.

Now however, it is saying it could sell a majority stake in the unit or even a complete sale of the entire semiconductor business.

Toshiba paid $5.4 billion for Westinghouse in 2006, anticipating a nuclear-power renaissance that never came. A year later, HP had to write down $9 billion on that purchase. But it just amplified that problem.

This is mainly the result of a writedown in excess of £5bn in the value of Westinghouse, in turn caused in large part to a litigation settlement related to the CB&I Stone and Webster construction arm the subsidiary bought past year, says Forbes.

The company said it will reorganize its nuclear business directly under Tsunakawa for stricter monitoring.

Toshiba shares dropped Tuesday morning as a report said the huge conglomerate may warn that its future is in jeopardy owing to huge losses in its nuclear power business. Less than a decade ago the company was worth five times more.

Toshiba had delayed issuing its results, but then said it was set to report a net loss of 390 billion yen (£2.75 billion) in the year to March 2017. Fallout from the scandal contributed to a group net loss previous year of ‎479.4bn yen.

The crisis in one of Japan's best-known brands threatens to spill over into Britain's nuclear programme. It still has a sprawling business spanning household appliances, railways, hydrogen energy and elevator systems.

Westinghouse faces spiraling cost overruns at nuclear plant projects in the United States, and Toshiba said on Tuesday that it would like to sell all, or part, of its controlling stake in the company.