Toshiba shocked investors on Tuesday with a last-minute delay to a long-awaited financial update, saying it needed more time to probe its Westinghouse nuclear business. Toshiba had been expected to release third-quarter earnings on Tuesday, including the exact size of a writedown for its U.S. nuclear business that is expected to top $6 billion due to hefty cost overruns at two projects, as well as planned remedies. Instead, the TVs-to-nuclear conglomerate said by email minutes after earnings had been due that it was “not ready”, sending its shares sharply lower. Chief Executive Satoshi Tsunakawa had been expected to use Tuesday’s earnings to address investor concerns. 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.
Reuters 14th Feb 2017 read more »
Toshiba chairman Shigenori Shiga has resigned, hours after the company was forced to delay revealing details of a multi-billion dollar loss. The Japanese conglomerate was expected to say it was writing off about $6bn (£4.8bn) at its US nuclear business. But the BBC understands Toshiba has not been able to agree with its auditors how big the writedown should be. The company said Mr Shiga was stepping down “to take management responsibility for the loss”. He will remain on the board until June to help deal with the fallout of the problems, Toshiba said. The financial chaos has led some analysts to warn the company’s future is at risk. Toshiba has asked regulators for an extra month before issuing its earnings report – which will include the size of the loss and details of measures it plans to take to tackle its finances.
BBC 14th Feb 2017 read more »
Toshiba could warn today that it may not be able to continue as a going concern after massive losses in its US nuclear construction business. The Japanese conglomerate may announce writedowns up to $6 billion related to a subsidiary’s takeover two years ago. It will warn that the scale of the losses may endanger the future viability of the company, according to Nikkei, the Japanese publisher. The company, which reports results for the nine months to December today, has already put a stake in its memory chip business up for sale as it battles to ensure that the amount it owes does not exceed the value of its assets. The state of the finances also threatens to derail the UK nuclear programme as Toshiba considers quitting the Nugen venture, which is due to build reactors at Moorside in Cumbria. Toshiba said last month that it was putting its entire overseas nuclear business under review and would give further details of its plans today. Toshiba, and its junior partner Engie, were already looking to bring more investors into the project. It is not clear whether buyers of the venture would be willing to continue using Toshiba’s Westinghouse reactor technology, which is close to securing regulatory approval for use in the UK. Switching to a new technology could cause years of delay and uncertainty for Nugen, which still claims it can take a final investment decision next year.
Times 14th Feb 2017 read more »
Toshiba is expected to confirm that it is withdrawing from new nuclear projects outside Japan, dealing a blow to plans for a new power station in the UK. Chris Jukes, the GMB union’s senior officer for Sellafield, said: “A new build at Moorside is part of a vital broader and home-grown energy mix – built, maintained and operated by British workers. Brexit should be a perfect opportunity to demonstrate conclusively a better way for nuclear in west Cumbria. For 70 years Whitehaven has been a hub for nuclear. That is why we are calling on the British government to commit the investment that is lost by Toshiba pulling out and for the British and Japanese governments to work together on a broader solution so that post-Brexit, west Cumbria jobs, skills and nuclear futures are guaranteed.” Rebecca Long-Bailey, the shadow business secretary, said: “The government’s energy policy is in chaos. We have become increasingly reliant on the decisions of foreign companies whose interests lie with their owners and not British consumers. If Toshiba pulls out of the proposed Moorside plant in Cumbria, the government must intervene immediately and provide public support and financial stability for Moorside and the community of west Cumbria. That means taking a public stake in exchange for public support to protect energy supplies and jobs. Labour backs new nuclear and an expansion of renewable energy to keep the lights on and meet our climate change targets.”
Guardian 13th Feb 2017 read more »
Toshiba is considering selling an interest in a U.K. nuclear venture to Korea Electric Power Corp., aiming to reduce its involvement in the riskier side of the atomic power business in the wake of massive losses linked to U.S. projects. The Japanese conglomerate controls 60% of NuGeneration, a joint venture planning to build a nuclear plant in northwestern England. Toshiba has sought to unload part of this stake for some time. The company has discreetly approached Kepco about a deal. Going forward, the two sides will hash out such details as how much of NuGen will change hands. Toshiba will likely also request help with manpower, such as sending Kepco nuclear engineers to the U.S. and elsewhere amid a shortage in Japan.
Nikkei Asian Review 14th Feb 2017 read more »
If you want to understand why Toshiba Corp. is about to report a multi-billion dollar write-down on its nuclear reactor business, the story begins and ends with a one-time pipe manufacturer with roots in the swamp country of Louisiana. The Shaw Group Inc., based in Baton Rouge, looms large in the complex tale of blown deadlines and budgets at four nuclear reactor projects in Georgia and South Carolina overseen by Westinghouse Electric Co., a Toshiba subsidiary.
Bloomberg 13th Feb 2017 read more »