Toshiba to unveil nuclear writedown as it scrambles for cash | Reuters
TOKYO Toshiba Corp (6502.T) will on Tuesday uncover the scale of a multi-billion dollar writedown from cost overruns at its U.S. nuclear arm, along with its recovery plans as the Japanese industrial conglomerate scrambles for cash.Toshiba warned of a potential writedown in December, a year after a $1.3 billion accounting scandal.
TOKYO Toshiba Corp (6502.T) will on Tuesday uncover the scale of a multi-billion dollar writedown from cost overruns at its U.S. nuclear arm, along with its recovery plans as the Japanese industrial conglomerate scrambles for cash.Toshiba warned of a potential writedown in December, a year after a $1.3 billion accounting scandal. Sources familiar with the matter say the charge will be as high as 700 billion yen ($6.2 billion) - a sum that would wipe out the group's shareholder equity.Japan's Nikkei business daily reported on Tuesday that the TVs-to-construction conglomerate would warn alongside its quarterly earnings that its future is unclear. Toshiba may also sell an interest in British nuclear venture NuGeneration Ltd to Korea Electric Power Corp (Kepco) (015760.KS), the newspaper said. Reuters reported earlier this month that Toshiba was seeking at least a partial exit from the venture.
Asked about the Nikkei report, a Toshiba spokesman declined to comment. A Kepco spokesman declined to comment, as "Toshiba's nuclear business plan has not been crystallized yet." Toshiba shares fell more than 4 percent in early trade on Tuesday, underperforming a roughly flat broader market in Tokyo.
With 190,000 workers employed at some 500 units, Toshiba may be too big to fail immediately. But like other Japanese firms that have dodged financial collapse, such as Sharp Corp (6753.T), Toshiba could face protracted pain.Chief Executive Satoshi Tsunakawa will on Tuesday outline the prospects for Toshiba's nuclear arm and is expected to update on efforts to raise capital, including the sale of a stake in its memory chip business in Tokyo.
Toshiba has offered a 19.9 percent stake in its chips business to investment funds and rivals including Bain Capital, SK Hynix (000660.KS) and Micron Technology (MU.O), sources have said. (Reporting by Makiko Yamazaki in Tokyo, Jane Chung in Seoul and Rishika Sadam in Bengaluru; Writing by Tim Kelly; Editing by Clara Ferreira Marques and Stephen Coates)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.