Toshiba mulling write-down of US$1.8b at Westinghouse
Print Edition
JAPAN’S Toshiba Corp said yesterday that it was looking at whether it would need to write down its nuclear business given damage to the company’s credit profile after a US$1.3 billion accounting scandal last year.
The electronics conglomerate also confirmed a report that US authorities are probing accounting at its US units, although its Westinghouse nuclear power subsidiary denied that its finances were under investigation.
Wanting to draw a line under the accounting scandal, Toshiba has sought to move on to streamlining its businesses, whose poor performances had been masked by years of false bookkeeping.
At a business strategy update yesterday, it unveiled an extra 3,000 job cuts, taking its planned total to 14,000 — a restructuring measure that comes on top of a US$5.9 billion sale of its medical equipment unit as well as the sale of its home appliances business announced this week.
But the latest developments concerning its nuclear business and the probe highlight that its accounting woes are far from over.
While a stress test on its nuclear business last quarter had shown that there was no need for a write-down, Toshiba said its lower credit ratings and its weaker ability to procure funds had prompted a new test.
Nuclear power providers usually fund new plants via large-scale equity and bond issuance, making their creditworthiness extremely important.
“We cannot gain lost trust and corporate value in just a day. We don’t know how long it will take,” Chief Executive Masashi Muromachi told a news conference.
The Asahi newspaper said earlier yesterday that Toshiba is studying a 200 billion yen (US$1.8 billion) write-down for Westinghouse.
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