Toshiba Warns Westinghouse Nuclear Losses Jeopardize Its Future
- Toshiba’s been unable to get auditors to sign off on results
- Four auditors add independent review to emphasize risks
Toshiba Warns Investors of Its Future
The troubles at Japan’s Toshiba Corp. grew deeper as the 142-year-old conglomerate warned it may not be able to continue as a going concern because of losses from its Westinghouse Electric nuclear business. Shares fell as much as 3.6 percent in Tokyo.
The disclosure came Tuesday as the Tokyo-based company took the unusual step of reporting third quarter earnings without approval from its auditors. Toshiba said losses last year had left it with negative shareholders equity of 225.6 billion yen ($2.1 billion) at the end of December, jeopardizing its listing on the Tokyo Stock Exchange. Toshiba has been at odds with PricewaterhouseCoopers Aarata over accounting at Westinghouse, which has been hit with billions of dollars in losses from cost overruns on nuclear projects.