nuclear-news

Toshiba Corp. can’t get past its accounting problems.

The Japanese company, which paid a record fine a year ago for its bookkeeping practices, warned that it may now have to take another charge of several billion dollars related to an acquisition made by U.S. unit Westinghouse Electric.

The company’s shares fell 12 percent to 392 yen at the close in Tokyo on Tuesday, the biggest decline since December 2015, after earlier reports that it may book a loss of as much as 500 billion yen ($4.3 billion). Toshiba issued a statement after the market closed, saying that while the final writedown was yet to be determined, it would affect earnings.

The loss is related to a dispute over the value of an acquisition by Westinghouse of a nuclear construction company called CB&I Stone & Webster Inc. The Nikkei newspaper said the writedown would come to about 100 billion yen, while Japanese broadcaster NHK said the charge may total as much as 500 billion yen. Such a loss would eclipse the 168 billion yen in net income that analysts had been projecting for Toshiba’s current fiscal year through March. The Tokyo-based company booked a loss of 460 billion yen last year.

While the company can probably offset a one-time loss of 100 billion yen, a charge of 500 billion yen would be “severe” given its potential impact on shareholders’ equity, said Takao Matsuzaka, a credit analyst in Tokyo at Daiwa Securities Group Inc.

“It comes down to how much they can counterbalance any loss,” Matsuzaka said by phone. “Improving the financial base of the company is a top priority.”………