Toshiba may book write-down of sev­eral bil­lion dol­lars

Kuwait Times - - BUSINESS -

Toshiba said yesterday it may book a one-time loss of sev­eral bil­lion dol­lars over a US sub­sidiary's ac­qui­si­tion of a nu­clear ser­vice com­pany. The Tokyo-based con­glom­er­ate said in a state­ment that costs linked to the 2015 trans­ac­tion will pos­si­bly come to "sev­eral bil­lion US dol­lars, re­sult­ing in a neg­a­tive im­pact on Toshiba's fi­nan­cial re­sults". The ex­act fig­ure of the po­ten­tial write-down is still being worked out, Toshiba Pres­i­dent Satoshi Tsunakawa told re­porters af­ter the an­nounce­ment. "The amount hasn't been de­ter­mined," he said.

Tsunakawa apol­o­gized for "caus­ing con­cern" and an­swered in the af­fir­ma­tive when asked if Toshiba is con­sid­er­ing boost­ing cap­i­tal. The an­nounce­ment came af­ter Toshiba shares closed nearly 12 per­cent lower on media re­ports about the po­ten­tial loss ear­lier in the day.

Toshiba said the pos­si­ble write-down was re­lated to the val­u­a­tion of the pur­chase by its US sub­sidiary West­ing­house Elec­tric of the nu­clear con­struc­tion and ser­vices busi­ness of Chicago Bridge & Iron.

West­ing­house and Chicago Bridge & Iron have turned to an in­de­pen­dent ac­coun­tant to re­solve a dis­pute over dif­fer­ences in as­set val­u­a­tions, Toshiba said ear­lier this year. "West­ing­house has found that the cost... will far sur­pass the orig­i­nal es­ti­mates" of $87 mil­lion, Toshiba said, adding that will re­sult "in (a) far lower as­set value than orig­i­nally de­ter­mined".

As a re­sult, West­ing­house and Toshiba may both book one-time losses for this fis­cal year end­ing March 2017, it said, adding it will an­nounced a re­vised earn­ings fore­cast as soon as pos­si­ble.

Toshiba is cur­rently ex­pect­ing an an­nual net profit of 145 bil­lion yen ($1.24 bil­lion), up 45 per­cent from an ear­lier es­ti­mate, on sales of 5.4 tril­lion yen. The an­nounce­ment is the lat­est blow to Toshiba, a once-proud pil­lar of cor­po­rate Ja­pan. It has been be­sieged by prob­lems, most notably a profit-pad­ding scan­dal in which bosses for years sys­tem­at­i­cally pushed sub­or­di­nates to cover up weak fi­nan­cial re­sults. In an in­ten­sive over­haul, the com­pany has been shed­ding busi­nesses and an­nounced the sale of its med­i­cal de­vices unit to cam­era and of­fice equip­ment maker Canon. In­vestors had wel­comed the makeover, with Toshiba shares climb­ing 77.3 per­cent this year through Mon­day. — AFP

TOKYO: Toshiba Corp Pres­i­dent Satoshi Tsunakawa (right) bows at the end of a press con­fer­ence at the com­pany's head­quar­ters in Tokyo yesterday. — AFP

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