TEPCO Reports Mind-Boggling, Record-Setting Loss Last Year
Tweet
Share
E-mailGet Alerts TKECF Hot Sheet
Join SI Premium – FREE
History was made in Japanese business Friday when Tokyo Electric Power Co. (OTC: TKECF) reported the largest loss outside of the financial sector Japan has ever seen.
How big of a loss? how does ¥1.247 trillion ($15.28 billion) sound to you?
The loss, for TEPCO's fiscal year ended in March, is a vast swing from the ¥133.78 billion gain reported in the previous year, according to the Wall Street Journal.
TEPCO's President, Masataka Shimizu, will step down as planned in taking responsibility for the much-criticized handling of the Fukushima Dai-Ichi reactor, which was crippled following the disastrous March 11th earthquake and resulting tsunami.
Japan's previous record-holder for an annual loss (from a non-financial firm) comes from Nippon Telegraph & Telephone, which dropped ¥834.67 billion for its fiscal year 2002, making TEPCO's loss about 49 percent worse.
Looking at strictly operating segments, TEPCO actually posted a ¥399.62 billion gain, up from ¥284.44 billion last year.
TEPCO said it will permanently shut down damaged reactors and has canceled plans to build a new reactor there.
Things might still be glum moving forward, however. For TEPCO to receive government aid following the disaster, one of the stipulations was that there cannot be a ceiling on how much compensation might have to be paid out to people filing claims which were affected by the disaster. Some analysts have pegged that number at about ¥2 trillion, though it may go as high as ¥10 - ¥11 trillion, according to Bank of America.
How big of a loss? how does ¥1.247 trillion ($15.28 billion) sound to you?
The loss, for TEPCO's fiscal year ended in March, is a vast swing from the ¥133.78 billion gain reported in the previous year, according to the Wall Street Journal.
TEPCO's President, Masataka Shimizu, will step down as planned in taking responsibility for the much-criticized handling of the Fukushima Dai-Ichi reactor, which was crippled following the disastrous March 11th earthquake and resulting tsunami.
Japan's previous record-holder for an annual loss (from a non-financial firm) comes from Nippon Telegraph & Telephone, which dropped ¥834.67 billion for its fiscal year 2002, making TEPCO's loss about 49 percent worse.
Looking at strictly operating segments, TEPCO actually posted a ¥399.62 billion gain, up from ¥284.44 billion last year.
TEPCO said it will permanently shut down damaged reactors and has canceled plans to build a new reactor there.
Things might still be glum moving forward, however. For TEPCO to receive government aid following the disaster, one of the stipulations was that there cannot be a ceiling on how much compensation might have to be paid out to people filing claims which were affected by the disaster. Some analysts have pegged that number at about ¥2 trillion, though it may go as high as ¥10 - ¥11 trillion, according to Bank of America.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bank of America (BAC) Tops Q2 EPS by 9c, Beats on Revenue
- Goldman Sachs (GS) Tops Q2 EPS by $6.60, Beats on Revenue
- Delta Air Lines stock climbs on earnings beat and strong guidance
Create E-mail Alert Related Categories
Earnings, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
