Subscribe free to our newsletters via your
  Energy News  




Subscribe free to our newsletters via your




















CIVIL NUCLEAR
Toshiba execs under fire as loss forecast balloons
By Kyoko HASEGAWA
Chiba, Japan (AFP) March 30, 2017


Angry investors lambasted Toshiba executives at a shareholder meeting Thursday after it warned annual losses could balloon to more than $9.0 billion but they agreed to the sale of its memory chip business, the jewel in the Japanese giant's crown.

The heated meeting held just outside Tokyo comes a day after the huge conglomerate said its troubled US nuclear power unit Westinghouse Electric had filed for bankruptcy protection.

Toshiba, one of the pillars of corporate Japan, also warned Wednesday its annual losses, mainly tied to Westinghouse, could blow out to 1.01 trillion yen ($9.07 billion), compared with an earlier projected shortfall of 390 billion yen.

That would be a record annual loss for a Japanese manufacturer, according to Bloomberg.

Toshiba has delayed formally reporting its earnings over the problems at Westinghouse, which it bought for more than $5.0 billion a decade ago.

Among the issues, Toshiba has said it is probing whistleblower allegations of accounting misconduct by senior Westinghouse executives.

Thursday's meeting was held to get shareholder approval to spin-off Toshiba's prized memory chip business, seen as key for the cash-strapped company to turn itself around. The motion was approved.

Toshiba is the world's number two supplier of memory chips for smartphones and computers, behind South Korea's Samsung, and the business accounted for about one-quarter of its 5.67 trillion yen in revenue last fiscal year.

"It's unforgivable that they could book a trillion yen loss -- management should quit," a 75-year-old investor, who identified himself only as Tomari, told AFP before the shareholder meeting started.

The crisis comes less than two years after Toshiba's reputation was badly damaged by separate revelations that top executives had pressured underlings to cover up weak results after the 2008 global financial meltdown.

That scandal laid bare serious problems with Toshiba's internal governance and an unwavering employee loyalty highlighted in other Japan Inc scandals, including the $1.7 billion loss cover-up at camera giant Olympus and staff hiding a deadly airbag defect at auto parts giant Takata.

- 'Laughing stock' -

Toshiba president Satoshi Tsunakawa and other executives faced more than 1,300 shareholders who turned up to Thursday's meeting.

"We apologise to all stakeholders, including shareholders, for causing this trouble and worry over our nuclear business," Tsunakawa said.

Shigenori Shiga, who once headed Westinghouse and stepped down as Toshiba's chairman in February, was not at Thursday's meeting.

"Why is Mr Shiga not here today?" asked one angry shareholder. "The people who were in charge aren't even here today."

Toshiba cited "health issues" for the absence of Shiga, who is still with the company.

"Toshiba is now a laughing stock around the world," said one shareholder. "You're all incompetent managers. Do you even know what's going on?"

Toshiba shares jumped four percent to 228.2 yen Thursday in response to news that the memory chip sale will go ahead, with bids expected this week.

But the stock has lost more than half its value since late December when it warned of huge losses and the probe at Westinghouse.

Japanese financial regulators have given Toshiba until April 11 to publish results for the October-December quarter -- they were originally due in mid-February.

The firm is at risk of an embarrassing delisting from Tokyo's stock exchange.

"I'm watching the share price everyday," a 70-year-old investor said.

"The value of my small investment depends on them" she added, referring to Toshiba executives.

Westinghouse was once hailed as a future growth driver after the 2011 Fukushima nuclear accident brought new business in Japan to a halt.

But the US firm has been hit by the project delays and cost overruns at plants in two states while weakening prospects for the nuclear power industry globally have also weighed on its fortunes.

bur-kh/pb/ds

TOSHIBA

OLYMPUS

TAKATA

CIVIL NUCLEAR
Westinghouse's woes spotlight US nuclear sector's decline
Washington (AFP) March 30, 2017
Westinghouse's bankruptcy announcement Wednesday cast a pall over the future of nuclear energy in the United States and comes as the Trump administration seeks to revive the coal industry. Charles Fishman, an analyst at the investment firm Morningstar, said chances were slim that the industry would commit to building new nuclear power stations any time soon. "It might be the final nail" ... read more

Related Links
Nuclear Power News - Nuclear Science, Nuclear Technology
Powering The World in the 21st Century at Energy-Daily.com

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

CIVIL NUCLEAR
Ridding the oceans of plastics by turning the waste into valuable fuel

Shell unveils giant new high-tech research lab in India

Hydrogen production: This is how green algae assemble their enzymes

Community in chaotic Jakarta goes green to fight eviction

CIVIL NUCLEAR
Report: Global renewable power capacity expanding

Next generation perovskite solar cells with new world-record performance

Financialization's negative effect on the American solar industry

Bio-inspired energy storage: A new light for solar power

CIVIL NUCLEAR
U.N. says low-carbon economy not a "pipe dream"

Mega-wind farm offshore Denmark clears hurdle

Japan scientist eyes energy burst from 'typhoon turbine'

North Carolina offshore wind hailed as job creator

CIVIL NUCLEAR
World Bank urges more investment for developing global electricity

US states begin legal action on Trump energy delay

Program to be axed saves energy in LA buildings

Energy demand metrics indicate strong U.S. economy

CIVIL NUCLEAR
How does oxygen get into a fuel cell

Clarifying how lithium ions ferry around in rechargeable batteries

Building a market for renewable thermal technologies

New gel-like coating beefs up the performance of lithium-sulfur batteries

CIVIL NUCLEAR
Argentina suspends Canada's Barrick mining over spill

California prepares for war with Trump over environment

Paris mayor orders cleanliness blitz

Rocks that tell our industrial history

CIVIL NUCLEAR
New technology could end costly crude oil pipeline blockages

Crude oil prices post modest gains in Tuesday trading

Transocean wins with new contracts from Norway's Statoil

UK shale gas extraction could be reduced by limited space to develop wells

CIVIL NUCLEAR
Final two ExoMars landing sites chosen

Mars dust storm west of Opportunity starting to abate

Breaks observed in Curiosity rover wheel treads

Mars Volcano, Earth's Dinosaurs Went Extinct About the Same Time




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News






The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement