Posted on 12/29/2016 5:20:54 AM PST by RS_Rider
Toshiba Corp. shares plunged by the most on record as the once-heralded U.S. nuclear renaissance turns into a nightmare for the Japanese company.
The shares fell by 20 percent, the most since 1974, according to available data, to close at 312 yen in Tokyo following a 12 percent drop Tuesday.
Toshiba said it may have to write down billions related to an acquisition made by U.S. unit Westinghouse Electric that was geared toward completing the newest generation of reactors at two U.S. facilities. The projects, overseen by utilities Southern Co. and Scana Corp., are years behind schedule and billions of dollars over budget.
Southern's nuclear expansion in Georgia and Scana's in South Carolina were once viewed as part of a rebirth of the U.S. atomic power industry, which hadn't seen a new reactor licensed in three decades. However, stumbles with those projects, the nuclear disaster in Fukushima and a flood of cheap natural gas that lowered U.S. power prices made new reactors increasingly expensive and risky.
“This is another reminder of how hard it is to predict how much new projects are going to cost,” said Kit Konolige, a utilities analyst for Bloomberg Intelligence. “That just makes it a higher hurdle for any new nuclear U.S. construction project. “
Westinghouse's purchase of contractor CB&I Stone & Webster Inc. resulted in a settlement with the utilities regarding legal disputes over construction delays and cost overruns. However, Westinghouse and CB&I have squabbled in court over how expensive the delays will be and who should pay for them.
(Excerpt) Read more at triblive.com ...
Stone & Webster used to be pretty good.
+1
WEC still can’t manage their way out of a paper bag. Acquisition by Toshiba hasn’t change that.
The stolen technology was our methods for fabricating ultra quiet propeller blades for the subs. As I recall, the machine for doing it disappeared.
The stolen technology was our methods for fabricating ultra quiet propeller blades for the subs. As I recall, the machine for doing it disappeared.
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