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Toshiba has confirmed that it will become a nuclear weapon. The United States is the largest nuclear power company in the world.
The decision on NuGen, which was slated to build the Moorside nuclear plant in Cumbria, will raise further doubts about UK's ambitions to use new nuclear energy capacity that will be lost as coal-fired power stations close down in the coming years.
The 143-year-old Japanese conglomerate has been exposed to offload by a large number of companies in the wake of an unprecedented financial crisis triggered by mbadive writedowns on Westinghouse, its bankrupt US nuclear subsidiary.
NuGen to Korea Electric Power Corp (Kepco) fell apart. Toshiba had also explored a sale to Brookfield, the Canadian badet manager which bought Westinghouse for $ 4.6bn in January.
The midterm strategy compiled by Nobuaki Kurumatani, the new chief executive of Toshiba, will be asked about the group's growth prospects after it's made up its chip business to a consortium led by Bain Capital.
In early Tokyo trading, shares rose as much as 6 percent after the Nikkei reported details of its midterm plan before the announcement. Following the earnings results, the stock was up 4.8 per cent.
As part of the five-year "Toshiba Next Plan", the group said its board has approved its huge ¥ 700bn share ($ 6.2bn) buyback program, amounting to roughly 40 per cent of its issued shares, which was revealed just two months after Mr Kurumatani took over as CEO.
Toshiba lowered its full-year net profit guidance to ¥ 920bn from an earlier ¥ 1.07tn to account for the costs of NuGen withdrawal and the sale of its LNG business in the US. The company will also cut to 1,460 jobs by the end of March.
The five-year plan includes a target to increase revenue and its return on equity to 15 percent by the fiscal year through March 2024.
But Yoshihiro Okumura, general manager at Chibagin Asset Management, said: "It's hard for investors to see the next pillar for Toshiba is to drive growth."
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