Toshiba is a Japanese conglomerate that is mostly recognised because of their range of electronic products. But their business is diverse and includes nuclear services, which is responsible for about a third of their revenue.
The problem the company is facing now stems from their nuclear services business but it’s rocking the entire company. Just in three days their shares have lost about 40% of its value.
As investors demanded an explanation, the firm’s Chairman, Satoshi Tsunakawa, in a statement on Wednesday said their nuclear business may be worth less than previously thought and apologised.
The company’s nuclear business has not recorded any profit since 2013. With the on-going crisis ratings agencies, including Moody’s and S&P, have all cut their ratings on Toshiba’s credit.
Toshiba is no stranger to scandal, just last year their chief executive resigned after it emerged that their profits had been overstated for seven years.