Toshiba fears larger than expected losses

FILE PHOTO - Workers prepare the New Year's eve numerals above a Toshiba sign in Times Square Manhattan, New York City

FILE PHOTO - Workers prepare the New Year's eve numerals above a Toshiba sign in Times Square Manhattan, New York City

Published Jan 19, 2017

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Tokyo - Toshiba could post a much larger loss than previously

expected on its nuclear power business in the US, Japanese media

reported on Thursday.

Toshiba could post a loss of up to 700 billion yen (6.1 billion

dollars), much more than the 500 billion yen it had predicted in late

December, the Kyodo News agency reported, citing unnamed sources.

Costs related to the construction of nuclear reactors had also likely

ballooned, Kyodo added.

Toshiba were forced as a result to seek financial assistance from a

state-owned lender, the report said. 

Toshiba said in a statement that Thursday's media reports were not

based on any announcements by the company.

Read also:  Toshiba shares recover after plunge

A Toshiba spokesman declined to comment on whether the company had

sought financial help from the state-owned Development Bank of Japan

(DBJ).

Toshiba was hoping to receive support from major creditor banks and

the DBJ, the Kyodo report said.

Toshiba has suffered a setback in its nuclear business at home and

abroad since Japan's worst atomic disaster, at the Fukushima Daiichi

nuclear power plant, triggered by a powerful earthquake and ensuing

tsunami in March 2011.

In the financial year ending in March 2016, Toshiba suffered a record

net loss of 460 billion yen as it was forced to undergo restructuring

in the wake of a major accounting scandal.

The company admitted it had inflated profits over seven years.

DPA

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