As expected, the electronics outfit Toshiba has seen a $3.52 billion loss in the nine months through December.
The loss is largely due to a goodwill impairment of around $5.28 billion on a US nuclear unit that came to light in late 2016.
The company hopes to keep the amount it owes from exceeding the value of its assets for the full year through March by selling part of its chip operations and taking other measures.
Toshiba will announce earnings for the April-December period tomorrow, along with a full-year outlook. The company is also expected to explain the cause of the losses, measures to avoid similar events and plans to rebuild its nuclear business.
Troubled Tosh, which was suffering from an accounting scandal, had to write-down of goodwill of CB&I Stone & Webster, a U.S.-based nuclear plant builder Toshiba acquired through U.S. subsidiary Westinghouse Electric in late 2015. Apparently, the world did not want nuclear power anymore and labour and materials costs were much higher than expected.
Toshiba overestimated the value of the company’s projects at the time of acquisition.
Now the company is rushing to flog off its semiconductor business to boost some capital.
But the problems are not just with the nuclear purchase. Toshiba is seen considering another goodwill write-down for Landis+Gyr, the world’s leading electric meter maker, which it acquired in 2011.
Toshiba had expected Landis, a Swiss company, to become a growth engine for its smart grid and smart community thrust, but its hopes have not materialized. It is expected to have to write down some of the value of this outfit too,