The_Guardian_-_2016-12-29

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Toshiba
Toshiba shares fall 20% as nuclear writedown
sinks in
Japanese company’s hit could run into billions after subsidiary Westinghouse Electric bought Chicago
Bridge and Iron for much more than it was worth
Toshiba shares fell after the company predicted a large writedown of Chicago Bridge and Iron,
bought by its subsdiary Westinghouse Electric. Photograph: Yuya Shino/Reuters
Agence France-Presse
Wednesday 28 December 2016 06.10 GMT Last modified on Wednesday 28 December 2016
22.58 GMT
Toshiba shares dived more than 20% on Wednesday in their second straight double-digit plunge as the
company said it may book a one-time loss of several billion dollars over its US nuclear business.
Toshiba’s stock price dropped by 20.42% to 311.60 yen, the largest fall allowed for a single day,
about 30 minutes after the opening bell, as the company failed to remove investor worries over the
potential risk.
On Tuesday the Tokyo-based conglomerate said costs linked to the acquisition in 2015 by its US
subsidiary of a nuclear service company would possibly come to “several billion US dollars,
resulting in a negative impact on Toshiba’s financial results”.
The exact figure of the potential writedown was still being worked out, Toshiba president Satoshi
Tsunakawa said after the announcement, apologising for “causing concern”.
The company statement suggested the figure would be released soon, citing an end-of-year deadline.
Toshiba shares had closed nearly 12% lower on Tuesday on media reports about the potential loss.
Analysts said uncertainty was fuelling investor anxiety.