UPDATE2: Toshiba delays earnings release again on troubled U.S. nuclear unit


Toshiba Corp. once again pushed back the release of its financial results Tuesday, a month after missing the initial deadline due to the need for more time to look into an accounting problem at its U.S. nuclear unit.

"We deeply apologize for causing stakeholders and investors trouble," the company said, adding that President Satoshi Tsunakawa will hold a press conference and explain the situation at its head office in Tokyo from 4 p.m.

Toshiba's application for another postponement was approved by the Kanto Local Finance Bureau, a unit of the Financial Services Agency, the same day, according to the company. The new deadline for filing its earnings results is April 11.

If Toshiba fails to meet the deadline, it could be delisted from the Tokyo Stock Exchange.

In a business plan released Tuesday, Toshiba also said it will sell a majority stake in its troubled U.S. nuclear unit, Westinghouse Electric Co., and remove it from its books to limit further losses stemming from construction delays and cost overruns.

The Japanese conglomerate last month postponed by one month the Feb. 14 release of its financial results for the April to December period, citing the need to launch an investigation after a whistleblower alleged "inappropriate pressure" at the U.S. unit, Westinghouse Electric Co., over the purchase of a U.S. nuclear plant construction company.

Toshiba is also studying Chapter 11 bankruptcy protection for the troubled U.S. unit.

The potential filing for Chapter 11 could increase the already huge losses related to its U.S. nuclear business to more than 1 trillion yen ($8.7 billion), according to sources.

In February, Toshiba said it expected a loss of 712.5 billion yen in its U.S. nuclear business for the nine months through December on an unaudited basis due to plant project delays leading to cost overruns.

It also estimated a group net loss of 390 billion yen for the full year through March 31, in a reversal from its previous forecast of a 145 billion yen profit, and said it likely fell into negative net worth of 150 billion yen at the end of the year.


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