Toshiba takes $2.3-bn hit from Westinghouse write-down

Toshiba Corporation today announced a $2.3 billion hit in its fiscal 2015-16 balance sheet, following an impairment loss for part of the goodwill of its nuclear business, including Westinghouse Electric Company LLC (WEC) and its group companies.

Toshiba said the impairment has been recorded on its consolidated balance sheet since it acquired WEC Group in 2006.

The impact of this impairment is reflected in the revised FY2015-16 business results announced today.

However, the company said, the write-downs in Toshiba's non-consolidated financial statement will not have any impact on Toshiba's consolidated business results.

Also, Toshiba said, the sale of its medical devices business would, however, reduce its forecast net loss for the year ended March 2016. Toshiba is now expecting a net loss of €470 billion ($4.23 billion) for the last financial year, much lower than the €710 million loss estimated previously.

Toshiba had last month sold its medical devices unit to camera and office equipment maker Canon for €665.5 billion, in a bid to revive business.
 
The company said revenue from the sale to Canon more than offset the negative impact it booked in the write-down of €260 billion at Westinghouse after a rise in financing costs.

However, Toshiba said its operating loss will expand to €690 billion against the previous estimate of €430 billion loss.
 
Sales are expected to shrink to €5.5 trillion from its previous estimate of €6.2 trillion because of the sale of the medical devices unit as well as a household appliances unit.

Toshiba, once a bright symbol of corporate Japan, has been besieged by problems, especially after its acquisition of Westinghouse Electric Corp.

Of late, Toshiba has been accused of profit-padding in which company top brass have for years systematically pushed their subordinates to cover-up weak financial figures.