One of Japan’s top industrial firms is receiving a major blow.
Toshiba shares took a dramatic fall on Thursday, seeing its beleaguered stocks down on level not seen in more than forty years, as losses of the firm’s nuclear power business in the United States could book as much as $6 billion according to the reports from media.
With the news, Toshiba shares dramatically fell by a huge 16% to finish the choppy trading at 242.3, coming off from a 26% drop earlier in the day, the stock’s biggest intraday slide in more than forty years according to the New York-based media company, Bloomberg.
The more than $6 billion losses rooted from the impairment of goodwill on CB&I stone & Webster, a nuclear plant builder in US, with its domestic construction and labor cost ballooning and exceeding the expected amount at the time of purchase.
It has been a rough road for Toshiba as it was initially battered with an accounting scandal back in 2015 and this current financial debacle of the firm cast doubts on the response of the giant industrial conglomerate, whether a move to pump up its finances could suffice to address any setbacks.
The company said it has yet to make final decisions on how to deal with the eye-popping loss but reports claimed Toshiba had drawn out plans to sell more of its assets including a stake in its chip business
The firm also tapped the assistance of the Development bank of Japan and other financial lenders to raise enough money that will save the company’s financial book.