Slashdot Mirror
Toshiba Forecasts $1 Billion Loss (zdnet.com)
Toshiba has announced a forecast net loss of $970 million due to the tax impact of selling its memory chip business, which was itself sold to make up for losses incurred from its nuclear energy business. ZDNet reports: The loss will come instead of its previously forecast net profit of 230 billion yen due to taxes incurred during the sale of the chip business, although its revenue forecast remains unchanged, Reuters reported. Toshiba had last month announced that it would be selling its memory chip business for 2 trillion yen to a consortium led by Bain Capital that includes Seagate and is backed by the Japanese government. As part of the sale, Toshiba said it would be investing 350.5 billion yen into the memory chip unit, maintaining some ownership over it, and last month said that it expected to close the deal "within days."
The tech company had originally named Bain as its preferred bidder back in June, although the sale had been slowed down after joint venture partner Western Digital had struggled to submit a competing bid alongside KKR after its original bid was rejected. As a result, Toshiba announced in June that it was planning to sue Western Digital for 120 billion yen, claiming the latter had interfered in the sale of the memory chip business. Western Digital had "continually interfered with the bid process" and "exaggerated" the power it had in relation to a potential sale, Toshiba claimed, and also made moves to prevent Western Digital employees in its Yokkaichi plant from accessing information pertaining to their partnership. Reuters said the delayed sale could potentially lead to Toshiba "not getting anti-trust clearance before the end of the financial year," which could in turn result in the Tokyo Stock Exchange delisting the company.
The tech company had originally named Bain as its preferred bidder back in June, although the sale had been slowed down after joint venture partner Western Digital had struggled to submit a competing bid alongside KKR after its original bid was rejected. As a result, Toshiba announced in June that it was planning to sue Western Digital for 120 billion yen, claiming the latter had interfered in the sale of the memory chip business. Western Digital had "continually interfered with the bid process" and "exaggerated" the power it had in relation to a potential sale, Toshiba claimed, and also made moves to prevent Western Digital employees in its Yokkaichi plant from accessing information pertaining to their partnership. Reuters said the delayed sale could potentially lead to Toshiba "not getting anti-trust clearance before the end of the financial year," which could in turn result in the Tokyo Stock Exchange delisting the company.
How things have changed since...
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
It's a shame. When the accounting scandal was announced, there was an exodus of talent from Toshiba. A lot of those folks landed there from previous 'lifetime' employment. Sharp's LCD unit being sold was also sad. Before that it was mergers between Hitachi, Mitsubishi and NEC semiconductor units.
The malaise is systemic.
All hail the AC who has all the answers
Worked for Microsoft....twice!
Free market capitalism isn't always pretty or nice. But these are things that needed to happen and in the end it will produce the most efficient supply chain and lowest prices. It's no different than a cheetah bringing down a gazelle on the African savanna. These are things that need to happen for the good of us all..
Of course, remember, the key word is CANCER! CANCER! Say it often enough and you too will get CANCER!
Trust me, you don't want to vaporize in the North Korean fireball gift.
Brilliant - they want to make up for the mounting losses by selling more stuff at a loss...
do not engage with American business unless you have to. They are always out to break you, and they have the full backing of their corrupt government. If you want safer business, stay in Asia and Europe, and when America comes begging, bleed them dry -- that's the American model applied.
Let's see now: credited to BeauHD, derogatory reference to something nuclear. Yep.
You're retarded.
"Free" market is just what they tell the plebs in high school, and you were stupid enough to believed it.
Remember when all those failing banks were allowed to fail? Remember when all those zombie companies supported by the zombie banks were allowed to fail?
It's call state-monopoly capitalism because the state is so deeply integrated there's essentially no distinction. Facebook is a state-monopoly company. You probably don't mind a corporation is spying on you, but if the state did the same you'd shit your pants and cry 1984. Well guess what bucko...
Free market is only for goyim.
Every once in a while, I'm forcefully reminded of why classic 80s cyberpunk had the idea of the Megacorp. This is one of those times.
Vintage computer games and RPG books available. Email me if you're interested.
I vaguely recall that division sold the top secret low-noise low-cavitation propellors of nuclear submarines technology to the Ruskies....
How things have changed since...
I did a search on that. That was 30 years ago. Toshiba Machinery and Norway's government owned Kongsberg both were involved in that debacle. Clearly the sales were a violation of export control but at the time it seems that nobody was talking about holding Norway responsible for their part in that and there was some debate about whether that particular sale really was the cause for Soviet submarines getting quieter. Senator Nunn at the time said that Soviet subs were getting quieter prior to the sale.
Free market capitalism isn't always pretty or nice. But these are things that needed to happen and in the end it will produce the most efficient supply chain and lowest prices. It's no different than a cheetah bringing down a gazelle on the African savanna. These are things that need to happen for the good of us all..
Did it need to happen? I am a former Toshiba employee, and my take on this is that their troubles stem from a couple major issues:
1. Toshiba invested approximately $1B or more in Nuclear technology prior to the Fukushima disaster. They were not alone- Alstom and other companies expected a Nuclear Renaissance to provide clean base load power to support future growth of non-dispatchable renewable power. The value of this R&D, staffing, and facility buildup is now approximately $0.
2. Toshiba sold 4 new reactors in the US which were under construction or about to begin construction at the time of Fukushima. These projects were sold and managed by a somewhat recently acquired subsidiary (Westinghouse Nuclear). It turns out that Westinghouse had no idea what they were doing, anyone with a clue had either retired or left. The contract didn't account for all the costs and cost overruns were rampant, as can be expected from poorly run projects. Now some or all of these project may be cancelled, and the escape clauses are not particularly favorable to Toshiba. Toshiba (HQ) financially guaranteed the project for the US subsidiary, which exposed them to financial risk. I am sure the customers insisted on this, but normally, the Japanese parent company is financially insulated from overseas subsidiaries to some extent - the subsidiary is a separate financial entity and normally goes bankrupt without pinching the parent company too hard.
3. Toshiba couldn't absorb both of the above hits. Their banking partners downgraded their credit, their stock took a dive, and they have had to scramble to put their financial house back in order.
I wouldn't say it is "for the good of us all" that the final nail has been hammered into nuclear power. In the US, aging coal plants are being replaced with natural gas. In Japan, they are operating coal plants that had been slated for retirement, and installing new natural gas plants. Perhaps this is more financially efficient, but many people would argue that it is a massive blow to the effort to improve the worldwide carbon footprint. And it wasn't inevitable, just the consequence of poor project management and natural disaster chance.
Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
You should come join us on IRC2P if you're not already there. Dystopian discussions are somewhat frequent, along with frequent and vocal deniers.
1. Toshiba invested approximately $1B or more in Nuclear technology prior to the Fukushima disaster. They were not alone- Alstom and other companies expected a Nuclear Renaissance to provide clean base load power to support future growth of non-dispatchable renewable power. The value of this R&D, staffing, and facility buildup is now approximately $0.
It was nearly $0 before. Even before Fukushima they couldn't find anyone interested in their reactors that was also willing to pay for them. Investing so much in nuclear when "alt" power was growing so quickly was just stupid.
2. Toshiba sold 4 new reactors in the US which were under construction or about to begin construction at the time of Fukushima. These projects were sold and managed by a somewhat recently acquired subsidiary (Westinghouse Nuclear). It turns out that Westinghouse had no idea what they were doing, anyone with a clue had either retired or left.
Anyone with a clue knew that about Westinghouse anyway.
3. Toshiba couldn't absorb both of the above hits.
1+2=3, but you don't get to count it as a separate event. Only two things conspired to kill Toshiba, and both of them were incompetence. To wit: betting on nuclear at literally the worst time in history. And by that I mean before Fukushima; after Fukushima simply became the new worst time in history, and the prior moment the second-worst which doesn't really improve the picture of Toshiba's competence in retrospect.
I wouldn't say it is "for the good of us all" that the final nail has been hammered into nuclear power.
Fission power, anyway. Maybe we'll have fusion later.
In the US, aging coal plants are being replaced with natural gas.
We are also bringing up renewables, although not quickly enough. Instead, we are fracking. If that was your point regarding natgas, I agree with you vehemently there.
Perhaps this is more financially efficient, but many people would argue that it is a massive blow to the effort to improve the worldwide carbon footprint. And it wasn't inevitable, just the consequence of poor project management and natural disaster chance.
Something like Fukushima was inevitable, but it didn't have to happen then if the reactor were sited someplace sensible. That costs more, but it's also the only reasonable thing to do. Sadly, the reasonable thing was not done. Now, they're still releasing radioactives. There is exchange of seawater in and out of the reactor site, and there's also semi-regular intentional dumps of contaminated water into the ocean. But if not now, and they had moved it up the beach past the generations-old high water markers, then it would just have been later due to sea level rise effectively moving the markers.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
The other thing to consider is the lost know-how, it might have been prudent to keep them viable just so some company knows *how* to build a nuclear power plant. You know, just in case next hurricane season causes even more damage and $1billion starts looking like chump change.
http://time.com/4952628/hurricane-season-harvey-irma-jose-maria/
you must watch a lot of CNN and get mind controlled easily
But if not now, and they had moved it up the beach past the generations-old high water markers, then it would just have been later due to sea level rise effectively moving the markers.
Odds are that if they had done that, the site would have been closed down by that time. Nuclear reactors have finite lifetimes, and that would likely be much shorter than the sea level rise timetable barring any massive increase in levels due to unforeseen events.
The cesspool just got a check and balance.
Nuclear reactors have finite lifetimes, and that would likely be much shorter than the sea level rise timetable barring any massive increase in levels due to unforeseen events.
Due to the slope of coastlines, small increases in sea level rise result in large inland encroachments in the tsunami danger zone.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
So you are saying they were incompetent because they could not see the future? Just because you can say (in hindsight) a decision made by others was a bad idea doesn't make them incompetent. There are risks involved with almost ALL decisions. Until you invent a reliable, accurate crystal ball don't speak in such absolutes.
Here's an article of them pouring 4 billion into a reactor they had bankrupted on earlier. http://money.cnn.com/2017/06/1...
It was not to make up for their nuclear power division, it was sold to make up for the over $1 billion accounting scandal
I guess you didn't read how the Fukushima reactors were built. The pump room was built on what was originally a hill that was removed to make the ground level and pumping easier. Had they not done all this excavation, the pump room would have been at least 9 feet higher and this tsunami would not have flooded the pumps and it is highly likely no cooling system problems would have occurred at all.
The cesspool just got a check and balance.
You can always ask the Chinese. They have a handle on the covert oil operatives ("green peace")