Toshiba tips re­turn to black after chip sales

Kuwait Times - - Technology -

TOKYO: Trou­bled Ja­panese con­glom­er­ate Toshiba said on Wed­nes­day it would swing into the black for the full fis­cal year as it com­pletes the multi-bil­lion­dol­lar sale of its chip busi­ness to re­store its bal­ance sheet. The Tokyo-based firm said it now ex­pects a net profit of 520 bil­lion yen ($4.9 bil­lion) for the year to March, re­vers­ing a net loss of 966 bil­lion yen a year ear­lier.

Toshiba, which had ear­lier ex­pected a full-year loss, up­graded its bot­tom line es­ti­mate as it fac­tored in a drop in tax ex­penses as­so­ci­ated with the sale of the prized chip busi­ness to a con­sor­tium led by Bain Cap­i­tal. The up­ward revision was also helped by the sale of US nu­clear en­ergy firm West­ing­house, which had long pres­sured Toshiba’s earn­ings be­cause of its mas­sive losses. The firm made its fore­cast as it an­nounced that in the nine months to De­cem­ber it saw a net profit of 27 bil­lion yen, re­vers­ing a 532.5 bil­lion yen loss for the same pe­riod last year.

Toshiba has been on the ropes after the dis­as­trous ac­qui­si­tion of West­ing­house, which racked up bil­lions of dol­lars in losses be­fore be­ing placed un­der bank­ruptcy pro­tec­tion. Those losses came to light as the group was still reel­ing from rev­e­la­tions that top ex­ec­u­tives had pres­sured un­der­lings to cover up weak re­sults for years after the 2008 global fi­nan­cial melt­down. In or­der to sur­vive and avoid delist­ing, the cash-strapped group has de­cided to sell the chip busi­ness-the crown jewel in a vast range of busi­nesses rang­ing from home ap­pli­ances to nu­clear re­ac­tors. —

AFP

TOKYO: Newly named chair­man of Toshiba Corp., Nobuaki Ku­ru­matani, lis­tens to ques­tions dur­ing a press brief­ing at the com­pany’s head­quar­ters. —

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