Tokyo Electric Power Co. posts huge loss, president to step down

16:33, May 20, 2011      

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Tokyo Electric Power Co.(TEPCO) said on Friday its annual net loss reached 1.25 trillion yen (15 billion U.S. dollars) and its president Masataka Shimizu said he will step down to take the blame of the Fukushima nuclear crisis.

The troubled utility said it will appoint Managing Director Toshio Nishizawa to replace Shimizu, effective after a June shareholders meeting, in a move widely expected after its Fukushima No.1 nuclear plant went into Japan's worst nuclear crisis after the March 11 quake and ensuing tsunami.

"I wanted to take managerial responsibility (for the huge loss and crisis)," Shimizu told reporters, bowing several times during the news conference. "We are doing our utmost to settle the crisis. "

The amount of TEPCO's net loss is the biggest ever for a nonfinancial Japanese firm.

At the press conference, the company said it is planning to cut work force and will not pay a dividend for the full year, but it fell short of providing an outlook for the current fiscal year which started in April.

The utility also announced that all four reactors at the crippled Fukushima plant will be scrapped, while a plan to build two more reactors at the plant will be abandoned. It booked 207 billion yen (2.56 billion U.S. dollars) in special loss for scrapping the four reactors.

Japanese government has been studying possible measures to bailout TEPCO, whose loss is expected to continue snowballing, as compensation such as to the people who are forced to relocate from their homes near the Fukushima plant starts.

Source: Xinhua
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