Satoshi Tsunakawa, President and CEO of Toshiba, the Japanese company that owns Westinghouse and its CB&I Stone Webster subsidiary, made that statement during a recent press conference. The event, held on January 27, was called to provide a status report for restructuring actions first announced on December 27, 2016.
Computing Magnitude Of Lost Goodwill
The restructuring is required as a result of the growing realization that the value of Westinghouse’s CB&I Stone and Webster subsidiary is probably several hundred billion yen (several billion dollars) less than its current book value. Adjusting the company’s stated value with its real value will require taking a write off of “goodwill.”
The reduction in goodwill value is based on CB&I’s existing and predicted future liabilities associated with completing four nuclear plant construction projects, two at Plant Vogtle in northeast Georgia and two at the V.C. Summer site in northwest South Carolina. ……..
There is even a significant possibility that the projects will fail to be completed at all.