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Toshiba chairman quits amid $A8b loss

dpa logodpa 14/02/2017

Japanese electronics and energy giant Toshiba says its chairman is resigning.

The chairman of Japanese electronics and nuclear giant Toshiba is stepping down after the firm booked an estimated 712.5-billion yen ($A8.2 billion) loss in its US nuclear power business.

The huge writedown means Toshiba expects to end the current financial year in the red for the second straight year with a net loss of 390 billion yen, compared with a net profit of 145 billion yen estimated in November, according to its preliminary results.

The company also predicts an operating loss of 410 billion yen, although it forecast an operating profit of 180 billion yen three months ago. Sales are estimated at 5.52 trillion yen, up from 5.4 trillion yen.

Toshiba chairman Shigenori Shiga will step down to take responsibility for the results while other executives, including president Satoshi Tsunakawa, will take pay cuts, the company says.

Earlier, the company delayed the reporting its official financial results by a month, citing problems with auditing related to the losses in its nuclear business. That sent Toshiba stock tumbling eight per cent in Tokyo trading.

Toshiba is expected to restructure its ailing nuclear business, but nothing has been announced.

Japan's nuclear sector was thrown into crisis after multiple meltdowns of reactors at a power plant in Fukushima prefecture triggered by the March 2011 earthquake and tsunami.

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