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Shares plummet after Toshiba flags massive nuclear loss

Tuesday, December 27, 2016 - 01:22

Toshiba shares dive 20 percent a day after the company flagged a major loss on a U.S. nuclear business acquisition, rekindling concerns about its accounting practices. Samantha Vadas reports.

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A dramatic tumble for Toshiba's stock price on Wednesday (December 28). Shares plummeting 20 percent at the open - a day after the Japanese tech giant flagged a financial hit of several billion dollars. The result of costs from U.S. nuclear projects the company bought up a year ago - coming in far higher than expected. Executives say that could result in a massive writedown. (SOUNDBITE) (Japanese) TOSHIBA CEO, SATOSHI TSUNAKAWA, SAYING: "I'm deeply sorry about all the concerns and possible damages this unprecedented situation may bring to all the stakeholders including our shareholders and investors." Tuesday's (December 27) announcement is a major blow to Toshiba's U-turn after a $1.3-billion dollar accounting scandal. As well as a $2 billion writedown for its nuclear business last financial year. The nuclear division is seen as one of the key pillars of growth for Toshiba - as it scales down less profitable parts of its business like consumer electronics, including PCs and televisions. Bosses say the company's business portfolio could be revised if necessary. But this latest shock could have implications beyond the bottom line... Analysts say confidence in Toshiba's management could be badly affected. Not to mention the global reputation of its nuclear wing.

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Shares plummet after Toshiba flags massive nuclear loss

Tuesday, December 27, 2016 - 01:22