Toshiba shares fall 10 pc on nuclear loss

TOKYO: Shares in Toshiba dived more than 10 per cent on Tuesday on reports it is likely to record a huge special loss related to a US subsidiary’s acquisition of a nuclear power service company.
Toshiba shares traded 10.4 per cent lower at 397.10 yen in morning trading, paring an earlier loss of as much as 16.3 per cent.
The company is expected to report a roughly 100 billion yen ($850 million) one-time loss for the fiscal year ending March 2017, the leading business daily Nikkei reported, while public broadcaster NHK reported the figure could go up to 500 billion yen.
Nikkei said the loss was related to a valuation dispute over Westinghouse Electric’s purchase from Chicago Bridge & Iron of a nuclear service company.
“Currently we are studying a loss of some 100 billion yen… linked to the purchase”, Toshiba said in a statement following the reports.
Westinghouse and seller Chicago Bridge & Iron have turned to an independent accountant to resolve a dispute over a difference in asset valuation, Toshiba said.
Toshiba currently expects an annual net profit of 145 billion yen, up 45 per cent from an earlier estimate, on sales of 5.4 trillion yen.
A once-proud pillar of corporate Japan, Toshiba 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, Toshiba has been shedding businesses and announced the sale of its medical devices unit to camera and office equipment maker Canon.
In May, Toshiba appointed a new president to steer the vast conglomerate past the scandal.— AFP