Toshiba chairman to step down after nuclear business loss, Latest Business News - The New Paper

Toshiba chairman to step down after nuclear business loss

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TOKYO Toshiba said yesterday that its chairman, Mr Shigenori Shiga, is stepping down from his post as the company warned it is set to book multi-billion-dollar losses in its US nuclear business.

The company issued a forecast that said it was on track to report a net loss of 390 billion yen (S$4.8 billion) in the current fiscal year to March, with losses in its atomic division topping 700 billion yen.

The firm said Mr Shiga will step down from his post but stay with the company - a common act of contrition at scandal-hit Japanese firms - as it probes an acquisition by Westinghouse Electric, its US atomic power unit.

Toshiba also hinted at a possible fresh accounting scandal yesterday as it delayed the release of financial results.

One of Japan's best-known companies, its Tokyo-listed shares plunged after it surprised markets by failing to release nine-month earnings at midday as scheduled.

Toshiba, which was hammered in 2015 by a profit-padding scandal, said it has requested a one-month extension for submitting earnings to market regulators.

Hours later, the company, which employs about 188,000 people globally, issued a preliminary earnings estimate.

Toshiba shares tumbled 8 per cent to end yesterday's session at 229.8 yen.

"The company, with deep regret, has submitted an application for approval to extend the deadline for submission" of its financial results until the middle of next month, it said in a statement. - AFP

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