Toshiba warns of US$9.1b loss for financial year 2016

This is up from last year's US$4.3b.

World Nuclear News reported that Toshiba Corp has reported a loss of ¥532 billion ($4.8 billion) for the first nine months of its 2016 financial year (April to December), up from a ¥479.4 billion loss recorded in the same period of FY2015. The nine-month financial results - which the firm's auditors, PricewaterhouseCoopers Aarata LLC, have refused to sign off - have already been delayed twice and raise the possibility that Toshiba could be delisted from the Tokyo Stock Exchange.

Toshiba's US subsidiary Westinghouse Electric Company filed for Chapter 11 bankruptcy on 29 March to protect it from creditors while it undergoes restructuring. Masayoshi Hirata, the Japanese electronics company's chief financial officer, said today the filing "may cause additional deterioration" of ¥620 billion in the full-year results, meaning a net loss for the full year of about ¥1 trillion.
"There are material events and conditions that raise substantial doubt about the company's ability to continue as a going concern," Toshiba said today.

Toshiba, which bought Westinghouse in 2006, warned in December last year that it might have to write off "several billion" dollars because of Westinghouse's purchase in 2015 of US construction firm CB&I Stone & Webster (S&W). Upon closing of that transaction, Westinghouse assumed full responsibility for all AP1000 projects and the nuclear integrated services business. Since then, Toshiba and CB&I - S&W's former parent company - have been in dispute over the business's true value.

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