Toshiba’s nu­clear write­down may rise to bil­lions

China Daily (Hong Kong) - - BUSINESS - By BLOOMBERG

Toshiba Corp can’t get past its ac­count­ing prob­lems.

The Ja­panese com­pany, which paid a record fine a year ago for its book­keep­ing prac­tices, warned that it may now have to take another charge of sev­eral bil­lion dol­lars re­lated to an ac­qui­si­tion made by US unit West­ing­house Elec­tric.

The com­pany’s shares fell 12 per­cent to 392 yen ($3.33) at the close in Tokyo on Tues­day, the big­gest de­cline since De­cem­ber 2015, af­ter ear­lier re­ports that it may book a loss of as much as 500 bil­lion yen. Toshiba is­sued a state­ment af­ter the mar­ket closed, say­ing that while the fi­nal write­down was yet to be de­ter­mined, it would af­fect earn­ings.

The loss is re­lated to a dis­pute over the value of an ac­qui­si­tion by West­ing­house of a nu­clear con­struc­tion com­pany called CB&I Stone & Web­ster Inc. The Nikkei news­pa­per said the write­down would come to about 100 bil­lion yen, while Ja­panese broad­caster NHK said the charge may to­tal as much as 500 bil­lion yen. The Toky­obased com­pany booked a loss of 460 bil­lion yen last year.

“As­sum­ing the ar­ti­cle to be ac­cu­rate, we would ex­pect Toshiba’s weak fi­nan­cial stand­ing to be dam­aged fur­ther,” said Takeshi Tanaka, an an­a­lyst at Mizuho Se­cu­ri­ties Co.

Toshiba didn’t elab­o­rate fur­ther in Tues­day’s state­ment to the Tokyo Stock Ex­change.

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