Saudi Arabia ranked first globally in empowering women in AI    Saudi, Iraqi defense ministers discuss regional situation in phone call    Jeddah airport serves over 5.3 million passengers during 5-week peak Umrah season    Woman becomes first in UK to give birth after womb transplant    IMF Chief lauds Saudi Arabia for its prudent leadership of IMFC    Saudi stocks extend rally as TASI hits 11,500 points    Supreme Court pauses midnight deadline to return man mistakenly deported to El Salvador    Beijing vows to 'fight to the end' as Trump threatens 50% more tariffs    US in direct nuclear talks with Iran, Trump says    Six cases of child malnutrition found in Samos migrant camp, medical charity says    Women make up 20% of e-sports players in Saudi Arabia    KSrelief signs agreement to care for orphans in earthquake-affected areas of Syria    First baby born in UK to woman with transplanted womb    Pakistani star's Bollywood return excites fans and riles far right    Saudi Arabia highlights long standing relationship with UNESCO during Executive Board meeting    Ithra to showcase its art collection at Riyadh Art Week    6.8 million people travel via four Saudi airports during 2025 Umrah season    The Seven Dogs wraps filming in Riyadh with a budget exceeding $40 million    Saudi U-17s qualify for 2025 FIFA World Cup after win over Thailand    Al Qadsiah and Al Ettifaq share spoils in tense Eastern Derby stalemate    Benzema rescues Al Ittihad with stoppage-time equalizer in thrilling Jeddah Derby    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Toshiba flags hit of 'billions of dollars' on U.S. nuclear acquisition
Published in Alriyadh on 28 - 12 - 2016

Toshiba Corp said it may have to book several billion dollars in charges related to a U.S. nuclear power plant construction company acquisition, sending its stock tumbling 12 percent and rekindling concerns about its accounting acumen.
The Japanese group said cost overruns at U.S. power projects handled by the CB&I Stone & Webster Inc business it acquired last December from Chicago Bridge & Iron Company NV (CB&I) would be much greater than initially expected, potentially requiring a huge writedown.
Toshiba's announcement came as its Westinghouse Electric Company subsidiary is engaged in a legal and accounting row with CB&I, which has argued in court that it expected a relatively small payment from Westinghouse of only $161 million when the deal closed on the understanding that the latter was taking on a challenged business.
Toshiba's latest writedown would be another slap in the face for a sprawling conglomerate hoping to recover from a $1.3-billion accounting scandal, as well as a writedown of more than $2 billion for its nuclear business in the last financial year."This will come as an additional shock to Toshiba's institutional investors that may further undermine confidence in company management, as well as significantly weakening its international nuclear credentials," said Tom O'Sullivan, founder of energy consultancy Mathyos Japan.
O'Sullivan noted the acquisition in December 2015 coincided with the finalizing of a record fine by Japanese regulators for accounting irregularities at Toshiba, indicating that corporate governance controls were extremely weak.
Toshiba Chief Executive Satoshi Tsunakawa, who only took the helm in June after his predecessor embarked on a series of restructuring steps to clean up Toshiba's books, said the conglomerate would look at some kind of strategy to boost capital.
"We would have needed to boost our capital base anyway because our shareholders' equity ratio is low," he told a news conference.
As of end-September, Toshiba had shareholders' equity of 363 billion yen, or just 7.5 percent of assets, which could fall close to zero if the company is forced to log significant losses.
Asked if Toshiba's liabilities would exceed its assets, Chief Financial Officer Masayoshi Hirata said the company had not yet completed its estimation of the charge.
It would finalize that by mid-February, he said, adding that the conglomerate would explain the situation to its main banks and seek their support. Toshiba's main lenders are Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group
Toshiba has positioned its nuclear and semiconductors businesses as key pillars of growth while seeking to scale down less profitable consumer electronics units such as personal computers and TVs.
But Toshiba could revise the positioning of its nuclear business if need be, said Tsunakawa, who has been credited with having shaped a medical equipment unit into a major earnings driver. The unit was sold to Canon Inc this year.
Tsunakawa added that asset sales or a potential listing of its cash-cow flash memory chips division were options that could be considered.
DEAL OF DISCORD
The deal between CB&I and Toshiba's Westinghouse division has been fraught with disagreement since at least July.
Clashing over who should shoulder potential liabilities related to cost overruns and over calculations for net working capital for the unit, CB&I sued Toshiba's Westinghouse division after Westinghouse said it was owed more than $2 billion.
Delaware's Chancery Court earlier this month dismissed the CB&I lawsuit, which accused Westinghouse of making claims in bad faith by seeking to use an arbitration process on net working capital of the nuclear construction business to eliminate liabilities it should have inherited by closing the deal.
CB&I has since launched a legal appeal that is pending. A Westinghouse spokeswoman reiterated on Tuesday that the company expected the issue to be decided by an independent third-party auditor pursuant to the terms of the deal with CB&I.
"Both the (CB&I legal) appeal and the independent auditor process are expected to be determined in 2017. CB&I will continue to defend its position vigorously in both processes," a CB&I spokeswoman said.


Clic here to read the story from its source.