Toshiba's nuclear woes trigger stock meltdown

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

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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.

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.

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