Satoshi Tsunakwa, the president of struggling Japanese conglomerate Toshiba Corp., said Tuesday that it was considering selling U.S. nuclear power giant Westinghouse Electric Company, a majority of which it purchased in 2006 for $5.4 billion.
In a new plan revealed Tuesday, Toshiba said it would consider a sale of Westinghouse, while investing in renewable power and trying to restore health to its nuclear power businesses in Japan. In short, the company plans to concentrate its efforts on the reactors that are already built, while steering away from future construction, despite the point that Westinghouse in 2015 purchased CB&I Stone & Webster, the nuclear plant construction division of Chicago Bridge & Iron.
Toshiba has been struggling financially after years of severe losses, much of that attributed to losses in its nuclear power investment, although it has also been shaken by a scandal that rattled the company right to the top of its executive suite, when it was discovered the company had been over-valuing its profits for years.
In late December, Toshiba alerted investors that was downgrading its earnings forecast for the year and at the ends of January at a press conference executives said that Toshiba would no longer be taking orders for new nuclear power plant projects. At that point, Toshiba said it would sell 20 percent of its chip making business in an effort to raise capital to appease lenders. The company said write downs in its nuclear construction business, owing to cost overruns and delays, would be about $6 billion.
At Tuesday's press meeting Tsunakawa said the company was “working on nurturing our growth business to return to stable growth by fiscal years 2018 and 2019.” He also said, “We want to deal with this properly.”
The company said Tuesday that it had been granted permission to delay reporting its fiscal year earnings based on its need to have an accurate assessment of its nuclear build division.
Toshiba has been given until April 11 to produce its annual report.
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