TOKYO -- Toshiba announced Tuesday afternoon that it will seek to deconsolidate its U.S. subsidiary Westinghouse Electric by selling the majority of its stake in the nuclear plant maker. Combined with the sale of its memory chip unit, Toshiba's revenue for fiscal 2017, which starts in April, will narrow 30% to 3.85 trillion yen ($33.5 billion) from the current year projection of 5.52 trillion yen, the company said.
Toshiba also said the financial authority had approved Toshiba's request to postpone its quarterly earnings report for the April-December period, for up to four weeks by April 11.
Toshiba's shares rose sharply after the revival plan announcement, after they plunged more than 8% in morning trading due to the announcement of the earnings delay. The shares closed up 0.46%.
According to the revival plan provided by Toshiba on Tuesday, it aims to generate a 3.85 trillion yen revenue in fiscal 2017 and 4.2 trillion yen in fiscal 2019, without the Westinghouse and chip units. Figures are based on currency exchange rates of 100 yen per dollar and 110 yen per euro.
Toshiba also plans to spend 40 billion yen for restructuring during fiscal 2017. As a result, the operating profit projection for fiscal 2017 is 70 billion yen, while that for fiscal 2019 is 210 billion yen.
President Satoshi Tsunakawa is scheduled to hold a news conference at the company's Tokyo headquarters at 4 p.m. Tuesday to explain the situation in detail.
The earnings announcement, initially slated for Feb. 14, was already delayed for up to a month until Tuesday to allow time for American and Japanese auditing firms to investigate reports of faulty internal controls at Westinghouse.
According to Toshiba's announcement about the delay, the company needs further investigation on whether "inappropriate pressures" were exerted by senior managers regarding Westinghouse's acquisition of a U.S. nuclear service company, which resulted in huge losses for Toshiba.
However, Toshiba also said it "has not recognized any matters that require adjustments to the consolidated quarterly financial statements, and the independent accounting auditors have not indicated that they have found such an issue."
Toshiba's unaudited net loss for the nine months through December, which the company announced on Feb. 14, was 499.9 billion yen, and the annual net loss projection for the year ending this month is 390 billion yen.