Toshiba delays results amid questions over United Kingdom nuclear plant
- Author: Zachary Reyes Feb 14, 2017,
Feb 14, 2017, 10:15
Toshiba Corp. (6502.Japan/TOSBF) closed 8% lower on Tuesday after announcing that it will postpone its quarterly earnings filing by up to a month. The Japanese electronics giant is expected to book an impairment charge of 600 billion yen to 700 billion yen or $5.26 billion to $6.14 billion on USA nuclear operations, leaving it with a group net loss in the high-400 billion yen range.
"We judged that it would take about a month for external lawyers.to conduct these further probes and for the independent auditors to review the results", Toshiba said. Toshiba's goal of winning orders for at least 45 new reactors by fiscal 2030 will likely be effectively scrapped, the report said.
Tokyo stocks fell Tuesday morning as a pick up in the yen hurt exporters while Toshiba dropped on a report that it was set to warn its future may be in doubt. It is already on the stock exchange's watch list that limits its ability to issue shares.
Reports had suggested Toshiba could log a net loss of more than $4bn (£3.2bn) in the April-December period.
Chief Executive Satoshi Tsunakawa had been expected to use Tuesday's earnings to address investor concerns.
The shortfall is linked to losses reportedly topping $6.0 billion at Toshiba's troubled USA nuclear business, once thought to be a growth driver after the 2011 Fukushima crisis slammed the brakes on new atomic projects in Japan. That includes the prospects for its nuclear business, where Toshiba is expected to withdraw from nuclear plant construction, and its efforts to raise capital, for example with the sale of a stake in its memory chip business in Tokyo.
Toshiba declined to comment on the report.
"Uncertainty over the Toshiba deal shows exactly why foreign investors shouldn't be left to keep Britain's lights on".
There were signs of a turnaround previous year, Toshiba reported earnings of 115 billion yen ($977 million) through the first six months of 2016.
"However, as of 12pm, Feb 14, JST (Japanese Standard Time, 3am GMT) time, the report has not yet become available".