Toshiba (TYO:6502) boss Shigernori Shiga has resigned, after the Japanese conglomerate reported a 390 billion yen ($3.4 billion) loss for the year ending March.
The loss was due to its struggling nuclear business which saw a 712.5 billion yen ($6.3 billion) loss as a result of its acquisition of CB&I Stone & Webster by its US nuclear operation Westinghouse. The company is set to make a loss for a year despite initial projections of a 145 billion yen profit.
Westinghouse’s purchase in 2015 of CB&I Stone & Webster, a nuclear construction and services business, was aimed at accelerating its business operations with respect to decontamination activities, decommissioning and plant projects. However, the move has since worried investors.
Mr Shiga was stepping down “to take management responsibility for the loss”, the firm said in a statement.
In light of the losses, the company maintained that it is committed to restructuring its nuclear business through for stricter monitoring practices, to ensure a loss of this magnitude is avoided in future financial sessions. In addition, it will centre efforts on reactor maintenance, the nuclear fuel and decommissioning of Fukushima nuclear plant, following a crisis in which various reactors malfunctioned following the earthquake and tsunami of March 2011.
In its preliminary results, Toshiba said it expects a group net loss of 500 billion yen ($4.4 billion) for April-December of 2016, taking into account the sizeable 712.5 billion yen los from its nuclear operations.
This follows a controversy in 2015 regarding accounting inequalities regarding its profits over a three year period. Previous CEO Hisao Tanaka alongside eight other senior officials also announced their resignation amid the scandal in July of that year after it emerged that profits may have been inflated across seven years.
Toshiba is headquartered in Tokyo, Japan and has a multinational reach. It recorded around 210,000 employees globally as of 31 March 2012.
Shares in Toshiba plunged as much as 9 percent amid the news of the loss. Shares are currently down 8.01 percent at 14.23PM (GMT).