Toshiba's nuclear woes trigger stock meltdown

Shares in Japanese industrial giant Toshiba slumped for the third successive day yesterday in a tailspin that has wiped nearly 50 per cent off the value of the business.

Toshiba shares have almost halved in value. Picture: Toru Yamanaka//AFP/Getty Images

It comes after the company’s chairman warned that its US nuclear business may be worth less than previously thought.

Toshiba’s shares fell a further 26 per cent at one stage in Tokyo yesterday, but pulled back some of those losses to close down 17 per cent.

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The stock had already shed 32 per cent in the previous two days. Toshiba is widely known for its electronic products, but nuclear accounts for a third of its revenue.

Toshiba has said that it faces a multi-billion dollar writedown linked to a deal done by its US subsidiary, Westinghouse Electric.

Westinghouse bought a nuclear construction and services business from Chicago Bridge & Iron in 2015, but the assets are seen as worth less than thought.