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Toshiba Chairman resigns after company announces USD 6.3 billion writedown

Toshiba Chairman resigns after company announces USD 6.3 billion writedown
The logo of Toshiba Corp is seen behind trees at its headquarters in Tokyo, Japan October 1, 2015. REUTERS/Toru Hanai

New Delhi: Japanse consumer durables giant Toshiba said on Tuesday that its chairman Shigenori Shiga was stepping down from his post as the company warned it was set to book multi-billion-dollar losses in its US nuclear business.

Hours after delaying the release of its financial results, the company issued a forecast that said it was on track to report a net loss of 390 billion yen (USD 3.4 billion) in the current fiscal year to March, with losses in its atomic division topping 700 billion yen.

The earnings results came after a chaotic afternoon, which began when the company missed its own deadline for announcing earnings. That raised questions over whether the Japanese company has control over its finances, and the shares fell to near 38-week lows.

Toshiba is now under pressure to come up with a plan for shoring up its balance sheet, which was already under strain from a profit-padding scandal in 2015 that led to restructuring, record losses and asset sales.

Toshiba has put up for sale a significant stake in its flash memory operations and is considering other ways of raising cash.

PTI