Monday, February 13, 2017
Toshiba prepares to unveil nuclear hole, other perils threaten
[TOKYO]
Toshiba Corp will on Tuesday detail a writedown of close to $6 billion after
bruising cost overruns at its US nuclear arm, turning investor attention to the
Japanese group's efforts to fix that and other balance sheet headaches.
The
TVs-to-construction conglomerate warned of a potential multi-billion dollar
nuclear writedown in December, a year after a US$1.3 billion accounting
scandal.
The TVs-to-construction conglomerate warned of a
potential multi-billion dollar nuclear writedown in December, a year after a
$1.3 billion accounting scandal.
Sources familiar with the matter say the final
charge, to be detailed alongside quarterly earnings, will be as high as 700
billion yen ($6.2 billion), a sum which alone would wipe out the company's
shareholder equity.
Toshiba, which has seen its market value almost
halve since the prospect of a writedown emerged in December, is also expected
to outline the prospects for its nuclear arm and update investors on efforts to
raise capital, including through the sale of a stake in its flagship memory
chips business.
"The question for Toshiba is how is it going
to move forward," said Masahiko Ishino, analyst at Tokai Tokyo Research
Center.
He added Toshiba would need to show how it could
stay competitive in the cash-generating but capital-intensive memory chip
industry, given its battered balance sheet
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