Toshiba chairman steps down as company takes $6.3B hit from nuclear unit


Toshiba’s chairman is stepping down after the Japanese company reported a $6.3 billion writedown at its troubled U.S. nuclear business.

The massive hit dragged the struggling conglomerate to an estimated net loss of $4.4 billion for the nine months ending December 31, raising concerns about whether it can survive its latest financial woes.

Chairman Shigenori Shiga is resigning to take responsibility for the widening crisis, Toshiba(TOSYY) said late Tuesday. The bombshell announcements capped a manic day during which the company’s stock plunged as much as 10% after it missed its own deadline to report earnings.

The iconic Japanese firm first warned in late December that it would lose several billion dollars from having to write down the value of the U.S nuclear construction business acquired in 2015. But the figure it announced Tuesday was even bigger than initially feared.

Shigenori Shiga toshiba
Toshiba Chairman Shigenori Shiga is resigning to take responsibility for the firm’s heavy losses.

Toshiba shares closed down 8% for the day and have almost halved in value since news of the problems first emerged. The company now says it expects to have a negative net worth of $1.3 billion by the end of March, underlining its perilous financial state.

It has said it’s considering selling a stake in its memory chip business to raise funds.

The numbers it announced Tuesday are only provisional, Toshiba said. It doesn’t expect to be able to announce audited results for another month because it’s investigating concerns about the accounting process at the U.S. nuclear division.

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