Toshiba posts 35% decline in full-year net profit


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Japanese conglomerate Toshiba on Friday said full-year net profit fell by more than a third due partly to weak sales in electronic devices and other one-off factors.

It also said a planned takeover bid process that is expected to take the company private will likely start in late July.

For the year that ended March, the engineering giant booked a 126.57 billion yen ($940 million) net , down 35 percent on-year, on sales of 3.36 trillion yen, up 0.7 percent.

Operating profit dropped 30.4 percent to 110.55 billion yen, mainly because of a contraction of the hard disk drive market, and other one-off factors, Toshiba said.

For the current financial year to March 2024, it forecasts a 110 billion yen operating profit, down 0.5 percent from the previous year, on sales of 3.2 trillion yen, down 4.8 percent.

It did not provide a forecast for full-year .

In 2018, Toshiba sold its prized chip unit Toshiba Memory to a group led by US investor Bain Capital.

Toshiba retains a 40 percent stake in the chip business, which was renamed Kioxia.

In March, Toshiba approved a $15 billion takeover bid by a consortium led by investment fund Japan Industrial Partners.

If the acquisition is successful, it will take the engineering giant private.

The long-awaited move follows years of turmoil for the company, which once symbolized Japan’s tech prowess but has more recently faced scandals, financial trouble and high-level resignations.

The JIP-led consortium includes 17 Japanese businesses and six Japanese financial institutions, which are investing in or issuing loans for the deal.

Toshiba, which produces everything from rice cookers to and , has been rocked by turbulence since 2015 when a profit-padding scandal erupted.

That led to huge losses, followed by a recovery that brought pressure from new activist shareholders.

Foreign investors have kept Toshiba afloat, but have also pushed for faster growth and a clearer long-term strategy.

In April last year, the firm said it was suspending a plan to split in two after a shareholder vote against the idea and would weigh going private.

© 2023 AFP

Toshiba posts 35% decline in full-year net profit (2023, May 12)
retrieved 15 May 2023

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