Toshiba may book big loss on US nuclear acquisition as shares plunge
Tokyo — Toshiba Corp said it may book a goodwill impairment loss of several hundreds of billion yen on a US nuclear power acquisition — a shock warning that sent it stock tumbling 12% and rekindled concerns about its accounting acumen.Toshiba did not specify a figure in its statement, which relates to the acquisition of Chicago Bridge & Iron’s nuclear construction business in December last year for $229 million by its Westinghouse division.Potential losses reported by domestic media have ranged from $850 million to $4.3 billion.Huge losses would be another slap in the face for a sprawling conglomerate hoping to recover from a $1.3 billion accounting scandal as well as a writedown of more than $2 billion for its nuclear business in the last financial year.Tom O’Sullivan, a former investment banker and founder of energy consultancy Mathyos Japan, noted the acquisition coincided with the finalising of a record fine by Japanese regulators for accounting irregularities at Toshiba."This i...
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