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Toshiba Books $6.3 Billion Writedown, Chairman to Resign

Bloomberg business news

Toshiba Books $6.3 Billion Writedown on Nuclear Business

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Toshiba Corp. says it expects to book a 712.5 billion yen ($6.3 billion) writedown in its nuclear power business, citing cost overruns at a U.S. unit and diminishing prospects for its atomic-energy operations. Shigenori Shiga will step down as chairman of the conglomerate.

The charge will result in a provisional 500 billion yen loss for the nine months through Dec. 31, the company said in a statement Tuesday. In December, Toshiba had warned the writedown could reach several billion dollars, triggering a share decline that has erased more than $7 billion in market value. As a result of the losses, shareholder equity will drop to negative 150 billion yen for the current year ending in March, Toshiba forecast.