Toshiba faces huge losses, writes off nuclear business for $6.3 billion

Toshiba is facing a crisis after the company announced its plans to stop building nuclear power plants and writing off about $6.3 billion relating to that business. The Japanese conglomerate had to postpone its fourth-quarter earnings report for a month.

This doesn't come as a surprise as just last month Toshiba had announced its plans to sell stakes in its memory chip and SSD businesses to cover the nuclear write-offs. Last year the company sold an 80 percent stake in its domestic appliances business, Toshiba Lifestyle, for $450 million.

On 14 February, the company published provisional figures showing negative shareholder equity, instead of announcing its final results. Speculations say that the results were delayed because auditors refused to sign off on the accounts.

This is a huge problem for the company and if it doesn't manage to cover up, there is a chance that it will have to sell off its laptop and PC business. Other Japanese companies like Sharp and Sony had sold off their PC and laptop business years ago and there is a possibility that Toshiba might be planning to do the same. Back in December 2015 a report by the Wall Street Journal suggested that the company had approached other manufacturers, including Vaio and Fujitsu but with no fruitful results.

Toshiba still has a bunch other businesses including tablets, TVs, Blu-ray disc players, hard disks and image sensors. Apart from being IT-related the company is also involved in power generation, railroads, industrial control systems and 'hydrogen economy', a long-term bid to make hydrogen fuel cells an easy and economic source of electrical energy for isolated homes and island communities.

Published Date: Feb 15, 2017 12:12 pm | Updated Date: Feb 15, 2017 12:12 pm