Toshiba chairman resigns as company shares dive after delaying financial results

Toshiba chairman resigns as company shares dive after delaying financial results”

After pulling the plug on its latest financial statement, Toshiba has now seen its chairman Shigenori Shiga step down over disastrous cost overruns in its nuclear division that have seen the company in a tailspin since a year ago.

The loss comes from the write-down of goodwill of CB&I Stone & Webster, a USA -based nuclear plant builder Toshiba acquired through US subsidiary Westinghouse Electric in late 2015.

In April-December 2015, Toshiba reported a 479 billion yen ($4.2 billion) net loss due largely to an embarrassing profit-padding scandal, in which bosses for years systematically pushed subordinates to cover up weak financial results.

Toshiba said Shigenori Shiga, its chairman, will step down from the board, effective Wednesday, but stay on as a Toshiba executive.

More news: Trump's trash talk on judges makes trouble for Gorsuch

The losses have gotten so big that they could topple a company whose roots go back to 1875, the dawn of Japan's modern era.

SCE&G is the primary subsidiary of SCANA Corporation, which announced that it will discuss the situation during its February 16 earnings call and "will take into account the relevant information disclosed by Toshiba" on February 14.

Toshiba paid $5.4 billion for Westinghouse in 2006, anticipating a nuclear-power renaissance that never came.

Toshiba's chip business, predominantly the manufacturing of NAND flash memory for Western Digital and others, is one of the few profitable businesses in Toshiba's portfolio. Toshiba's construction of plants in China also has been delayed.

More news: Education Expert: Betsy DeVos Should Address Local Control Before School Choice

However, Toshiba today (Feb. 14) announced the anticipated write-down on its nuclear engineering business at $6.3 billion.

"We have become increasingly reliant on the decisions of foreign companies whose interests lie with their owners and not British consumers", she said.

Westinghouse, Toshiba's US-based nuclear developer, produces the AP1000 reactors that are to be used at a planned £10bn power station at Moorside in Cumbria. It will also focus on reactor maintenance, the nuclear fuel business and decommissioning of the Fukushima nuclear plant in Japan, where reactors went into multiple meltdowns after a March 2011 natural disaster and tsunami. This deployment is running 2-3 years late, which may be part of why Toshiba is taking such heavy losses. Toshiba denied it had purposely covered up the problems.

More news: Volontary recall notice of Sargento shredded cheese

Like this


14 February 2017
Food Recall: Sargento Cheese Sold at Meijer Faces Possible Contamination
Listeria can potentially cause fatal infections in young children, the elderly or people with weakened immune systems. Included in the recall -- Sargento ultra thin Longhorn Colby and chef blends shredded nacho and taco cheese.

13 February 2017
Classic Hot Wheels cars are coming to 'Rocket League'
The Rocket League Hot Wheels DLC features, erm, Hot Wheels cars in Rocket League . It's no surprise then, that some toy cars have now made their way into the game.

13 February 2017
Mexican woman deported after routine immigration check
Guadalupe Garcia de Rayos went to mass and said a prayer before her immigration check-in Wednesday in Phoenix. She was reportedly held in an ICE facility for six months, and later released on a fine to her husband.

12 February 2017
Lin-Manuel Miranda Will Perform Moana Song at the Academy Awards
The 89th Academy Awards will take place on Sunday, February 26 at the Dolby Theatre in the Hollywood & Highland Centre. He could leave as the youngest artist ever to complete the EGOT by winning an Emmy, Grammy, Oscar and Tony award.

12 February 2017
Bali Landslides Kill at Least 12 After Heavy Rainfall
The idyllic tourist hotspot of Bali was partially submerged after five days of torrential rain triggered deadly landslides. The agency said more heavy rains are likely and people should be aware of the possibility of landslides and floods.

11 February 2017
Call of Duty's next release will go "back to its roots"
A general view of " Call Of Duty: Infinite Warfare " at Los Angeles Convention Center on June 15, 2016 in Los Angeles, California. So, what is Activision Blizzard to do in order to right the ship? They're a proven team that's passionate about this title.

11 February 2017
Sensex ends higher, bank stocks recover
Foreign portfolio investors (FPIs) sold shares worth a net Rs 449.52 crore yesterday, as per provisional data. The BSE market breadth was slightly tilted in favour of the bulls - with 1,357 advances and 1,332 declines.

09 February 2017
Clinton, other Democrats rally around silenced US Senator Warren
The Senate upheld McConnell's ruling along party lines, with Republicans agreeing that Warren violated the rules of debate. The effort to silence Warren largely backfired , turning the MA senator, briefly, into a social-media sensation.

08 February 2017
Winter Storm Watch issued
The snow is expected to start in our area late Wednesday night (after midnight) and continue through most of Thursday . Officials with the National Weather Service have issued a winter storm warning for the Lower Columbia Basin.

08 February 2017
Students, faculty express concerns over possible Affordable Care Act repeal
But it's not clear when such a replacement would go into effect, or what form it would take. Trump has vowed to repeal Obamacare, also known as the Affordable Care Act .