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Toshiba Shares Plummet After Warning of 'Billions' in Losses (cnn.com)
Toshiba's troubles keep piling up. From a report on CNN Money: The Japanese firm's shares plunged 20% on Wednesday, after the company warned it is expecting billions of dollars in losses from its takeover of a U.S. nuclear construction business last year. "We're still figuring out the exact numbers, but it could reach up to several hundred billion yen," CEO Satoshi Tsunakawa told reporters Tuesday. Toshiba's U.S. nuclear-power subsidiary Westinghouse acquired CB&I Stone & Webster late last year, when Toshiba was still struggling to recover from a $1.2 billion accounting scandal. Toshiba's shares dived in the months following that scandal, which led to a major management reshuffle after the Japanese conglomerate admitted it had doctored financial results for years. The company reported a loss of 460 billion yen ($3.9 billion) for 2015.
poor engineering controls at Westinghouse
There were issues with quality at a modular unit manufacturing site in Louisiana, but otherwise there have only been the expected challenges when building a large first of a kind plant. Yes, it is expensive, but once built the plant can run for 80 to 100 years and pay for itself many times over.