potinsnews.com March 25, 2017

Toshiba facing bankruptcy, total disintegration thanks to bad bets on nuclear power

16 February 2017, 12:52 | Jamie Ballard

Now they are getting set to post a group net loss of about $3.52 billion for the nine months through December

Now they are getting set to post a group net loss of about $3.52 billion for the nine months through December

And even this announcement was late and the figures are unaudited, according to the reports, leaving the possibility of even greater losses and leaving the company in extreme need of capital.

Toshiba failed to report its results as scheduled and later said it had requested a one-month extension for submitting the April-December earnings to market regulators.

But that may only be the start of the problems: the Japanese giant missed its quarterly earnings reporting deadline on the Tokyo Stock Exchange early on Tuesday and asked for a month's extension.

The company said Shigenori Shiga, Representative Executive Officer and Chairman of Toshiba, will step down on February 15 from his current position, but will remain in the board of directors to focus on solving issues related to the US unit.

In a company release, the chairman said he is resigning for "management responsibility for the loss on goodwill and impairment" related to the Westinghouse acquisition of CB&I Stone & Webster from Chicago Bridge & Iron Company.

Toshiba now expects to have 150 billion yen ($1.3 billion) of negative equity when its financial year ends in March. The company has previously planned to limit the sale to 20 percent to maintain control.

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Toshiba, which bought Westinghouse in 2006, warned in December a year ago that it might have to write off "several billion" dollars because of the purchase in 2015 of United States construction firm CB&I Stone & Webster.

Westinghouse's purchase in 2015 of CB&I Stone & Webster, a nuclear construction and services business, was aimed at winning more business in decontamination, decommissioning and plant projects. The company took over as a major stakeholder in NuGen in 2014 to build a 3,800-megawatt nuclear power plant in northwest England, but now says it will pull out of the construction work. "We must keep trying to do better".

During the past few decades, Toshiba has been wholly or partly involved in the construction of 20 nuclear reactors in Japan, none of which are now operating following the triple meltdown at Fukushima Daiichi in March 2011.

Construction of the new reactors is expected to create thousands of jobs over the next decade, with many contracts expected to go to United Kingdom firms.

It can't raise money on the stock exchange due to the exposure of accounting irregularities past year.

For the full fiscal year ending March 31, Toshiba forecast a net loss of 390 billion yen, reversing its November outlook for a 145 billion yen profit.

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