Financial reports regarding a failed Westinghouse nuclear unit caused the Japan’s watchdogs to do an investigation on Toshiba Corp.
The company based in Tokyo, Japan is being inspected due to the losses incurred by Toshiba’s nuclear unit, Westinghouse, which had cost the company billions of dollars.
The Japanese Securities and Exchange Surveillance Commission is investigating the process involved in the creation of Toshiba’s 2016-2017 financial report, meaning to see whether the report was made completely legitimate and justifiable.
Toshiba acquired Westinghouse Electric in 2006 with a value of $5.4 billion. The unit was meant to boost Toshiba into the potentially lucrative nuclear power market, the firm claimed that Toshiba’s acquisition would “herald the dawn of a new era for nuclear energy.” But as Toshiba set to work on its new purchase, it did not go as planned.
Even though Westinghouse had 2 nuclear power projects underway – but going through serious delays – it became enough of a financial burden that the company filed for bankruptcy protection, which led to a $6.3 billion write-down for Toshiba and great financial loss for the second year in a row.
Despite prediction of uptake in sales, Toshiba is set for a net loss of 390 billion year for the fiscal year ending in March 2017, with an operating loss of 410 billion yen.
Aside from this, Toshiba was also faced with a restructuring effort which cost the company its $18 billion sale of its valued memory chip unit.
Toshiba officially announced the sale of its memory chip business to a Bain-led consortium of investors for two trillion yen in September.
Apple and GE Partnership
Apple Inc. and General Electric Co. are looking into a partnership in order to create a software that will make tracking power plants and jet engines possible on Apple’s iPhones and iPads.
The companies were able to come up with a tool that will allow app developers to connect Apple’s iOS operating system more easily to the cloud-based software at the heart of GE, the Predix.
The Predix software connects industrial machines that are overloaded with sensors, such as wind turbines, jet engines and elevators, to data centers in order for loads of information from the machines to be analyzed, helping predict failures and make the machines run more cost effectively.
$12 billion in digital revenue is expected to be generated from the software by 2020, said GE, even if it took two months of “time-out” earlier in the year so that technical problems can be fixed.
As part of the arrangement between Apple and GE, the latter will make iPhones and iPads the standard mobile devices for its 330,000 employees as well as offer Mac desktop computers as a choice.
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