Toshiba Chairman to Resign as Earnings Report Delayed

The company's Westinghouse Electric Company (WEC) unit is the engineering, procurement, and construction contractor working on the construction of two new nuclear power plants with AP1000 reactors for South Carolina Electric & Gas Company (SCE&G) in Jenkinsville, S.C., and also is building two for Georgia Power Company (owned by Southern Company) near Waynesboro, Ga. It has already chose to spin off its core chip business and said today it is considering selling a majority stake, for which multiple potential investors have made offers.

The company already was grappling, however, with a scandal over company officials' doctoring accounting books to meet unrealistic profit targets.

When Australians hear the name Toshiba, they think of TVs and household appliances, but the Japanese giant is no longer known for its electronic products - they make up a tiny percentage of its business.

The Japanese company Toshiba may have reached the end of the road. But after that hour came and went with no release, Toshiba said it was asking for a one-month delay.

The losses are linked to a deal done by its U.S. subsidiary, Westinghouse Electric, when it bought a nuclear construction and services business from Chicago Bridge & Iron in 2015.

Scana and Southern shareholders could be on the hook if costs rise further and Westinghouse can't abide by its contracts, Morgan Stanley said in a research note last month, adding that Southern is seen as being more sheltered from any fallout. "We can assume that the company is not delaying its earnings release for good news". It didn't give details about the alleged pressure.

In its preliminary results, Toshiba said it anticipates a group net loss of 500 billion yen ($4.4 billion) for April-December of previous year, including the 712.5 billion yen hit from its nuclear business. It will also focus on reactor maintenance, the nuclear fuel business and decommissioning of the Fukushima nuclear plant in Japan, where reactors went into multiple meltdowns after a March 2011 natural disaster and tsunami.

Tsunakawa said Tuesday Toshiba is looking for potential partners to acquire a stake in Westinghouse.

Westinghouse is building reactors in Georgia and SC commissioned by utilities Southern Co. and Scana Corp., respectively. The company is only paying Westinghouse once certain construction milestones are hit. Westinghouse and its parent became the only guarantor on the projects, meaning that if the reactors couldn't be completed in a timely manner, Toshiba would shoulder the costs.

Toshiba itself has been more ambiguous.

SCANA Corporation, headquartered in Cayce, S.C., is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses.

The challenging by-election was forced on Labour by the resignation of its popular local MP Jamie Reed, who has taken a job as the head of development and community relations at Sellagield, the nuclear fuel reprocessing plant in the heart of the constituency.

 
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