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Toshiba to lose 260 billion yen due to losses over Westinghouse nuclear power subsidiary

flag-japanFlag-USA Toshiba expects loss over Westinghouse to reach 260 bil. yen , Kyodo News, 26 April 2016 Toshiba Corp. said Tuesday it plans to book an asset impairment loss of around 260 billion yen ($2.3 billion) in its results for the year to March 31 by writing down the value of its U.S. nuclear power subsidiary Westinghouse Electric Co. acquired in 2006……

 Toshiba said its operating loss for the year is now pegged at 690 billion yen, compared with its earlier forecast of 430 billion yen, on sales of 5.5 trillion yen against the earlier projection of 6.2 trillion yen.

“We don’t think our financial conditions have stabilized…so reinforcing our (financial) standing is the biggest challenge in the current business year,” President Masashi Muromachi told a press conference.

In computing the write down on Westinghouse, Toshiba reviewed the $2.93 billion in goodwill, or 350 billion yen based on the exchange rate at that time, it booked when acquiring the U.S. nuclear plant builder.

The goodwill, calculated by deducting from the purchase price the value of the assets and liabilities acquired, was reported on the balance sheet as a fixed asset…….http://kyodonews.net/news/2016/04/26/58694

April 28, 2016 - Posted by | business and costs, Japan

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