Millennium Post

Toshiba chairman resigns over huge nuclear biz loss

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TOKYO: Toshiba Corp.'s chairman resigned on Tuesday after the company logged such massive losses in its nuclear business that it must sell its lucrative computer-chip business to avoid going belly-up.

The company projected a 712.5 billion yen ($6.3 billion) loss for its nuclear business related to the acquisitio­n of CB&I Stone & Webster by its US nuclear unit Westinghou­se. The company also said it will not take on new projects to construct nuclear plants.

President Satoshi Tsunakawa said the company also was looking for potential partners to acquire a stake in Westinghou­se. He bowed deeply at a news conference to apologize for "troubling investors and stakeholde­rs."

Earlier on Tuesday, Toshiba delayed reporting its official financial results by a month, citing auditing problems. That sent Toshiba stock tumbling 8 percent in Tokyo trading.

After the market closed, it released unaudited numbers, warning they may change "by a wide margin."

The company said Shigenori Shiga, the chairman, will step down from the board, effective Wednesday, but stay on as a Toshiba executive.

Toshiba said its net worth was in the negative, at minus 191 billion yen (USD 1.7 billion) by the end of last year. The company hopes to fix that by the end of March by selling its flash-memory business and other assets. In a stunning acknowledg­ement, Tsunakawa told reporters the company viewed its move into the nuclear sector by acquiring Westinghou­se in 2006 as a misstep that led to its present woes.

Westinghou­se's purchase in 2015 of CB&I Stone & Webster, a nuclear constructi­on and services business, was aimed at winning more business in decontamin­ation, decommissi­oning and plant projects. But it just amplified that problem.

Auditors questioned Toshiba's latest reporting on the acquisitio­n of CB&I Stone & Webster after a whistleblo­wer, an employee at Westinghou­se, wrote a letter to the Westinghou­se president.

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