Toshiba plunges 20% on warning of write-down that could cost billions


TOKYO — Toshiba Corp. said cost overruns at U.S. nuclear reactors it is building were likely to force a write-down of as much as several billion dollars, clouding its turnaround plan after a 2015 accounting scandal.

The warning, which sent the company’s stock down 20% in Tokyo trading Wednesday, came just as the Japanese conglomerate seemed to have turned a corner thanks to an upswing in its semiconductor business.

Toshiba
6502,
-0.95%
  executives said Tuesday the company was looking at emergency steps to raise funds, including borrowing from its main banks. They said they couldn’t rule out the possibility that Toshiba’s U.S. nuclear-power subsidiary, Westinghouse Electric Co., would fall into negative net worth as a result of the write-down.

Toshiba Chief Executive Satoshi Tsunakawa became the latest boss of the company to bow before the cameras after the 2015 scandal, which led to a clean sweep of top management after the company acknowledged it had padded its financial results for years. “I apologize to shareholders, business partners and all stakeholders for the trouble we have caused,” Tsunakawa said in a news conference at the company Tokyo headquarters.

An expanded version of this report appears on WSJ.com.

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View more information: https://www.marketwatch.com/story/toshiba-plunges-20-on-warning-of-write-down-that-could-cost-billions-2016-12-27

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