Australian news, and some related international items

Nuclear financial crisis causes Toshiba’s shares to crash

money-down-holeToshiba shares crash as nuclear writedown crisis deepens Shares in Toshiba have dived 16% on reports that the embattled Japanese conglomerate faces bigger losses at its US nuclear power business. BBC News 19 Jan 17 

It is feared Toshiba may have to write down the value of the unit by a larger-than-expected 700bn yen ($6.1bn; £5bn).

There are unconfirmed reports Toshiba is seeking aid from the government-backed Development Bank of Japan (DBJ).

Toshiba said the exact writedown figure was not finalised, and declined to comment on any DBJ approach.

The laptops-to-hydro power giant was plunged into crisis late last year when it emerged it faced huge cost overruns on projects handled by a newly-bought company that builds US nuclear power plants. ……. on 27 December Toshiba admitted that it faced writedowns of “several billion dollars”. The company later indicated that the size of the writedowns would be between $1bn and $4.5bn.

Toshiba’s nuclear services business brings in about one-third of the industrial giant’s revenue.

The share price, down 26% at one stage on Thursday, is now 50% lower than when the writedown revelations emerged amid fears that the company still has no firm grip on the final costs………

January 20, 2017 - Posted by | Uncategorized

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: