Toshiba chairman quits post over huge losses

14 Feb 2017, 16:18

Shiga stepped down ‘to take management responsibility for the loss’. Photo: Reuters

Tokyo: Toshiba said Tuesday 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 ($3.4 billion) in the current fiscal year to March, with losses in its atomic division topping 700 billion yen, reports AFP.

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, reports AAP.

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.