By Editors of Power Engineering
Toshiba Corp., parent company of Westinghouse Electric, reported a $3.5 billion loss over the last nine months because of losses on its nuclear unit.
The company reported a goodwill impairment of $5.26 billion due to a writedown of CB&I Stone & Webster, a nuclear plant builder acquired by Westinghouse in late 2015, Reuters reported. Toshiba overestimated the value of the company’s projects, as dwindling global demand for nuclear and poor project management pushed up development costs.
In late January, sources within Toshiba indicated the company plans to exit nuclear construction altogether, though the company would continue to provide maintenance and decommissioning, and continue work on four nuclear plants already under construction in the United States.
The company has yet to announce concrete plans for its nuclear operations. Toshiba plans to sell part of its computer chip manufacturing business to help mitigate the loss.
The Reuters report noted that Toshiba hoped the smart grid development of its Landis subsidiary would drive growth, but that has yet to happen.