Toshiba Operating Profit Slumps 85 Pct in April-Dec.

Economy

Tokyo, Feb. 13 (Jiji Press)--Toshiba Corp. <6502> said Wednesday its group operating profit in April-December 2018 slumped 85.2 pct from a year earlier to 8,202 million yen, due to additional costs at its energy business division and weak semiconductor sales in China.

The result highlighted the need for the Japanese electronics and machinery maker to restore its earning power after selling its cash-cow flash memory unit, Toshiba Memory Corp.

In the first nine months of fiscal 2018, meanwhile, Toshiba's net profit soared about 38-fold to 1,021,623 million yen, thanks to massive proceeds from the Toshiba Memory sale in June last year.

The additional costs at the energy division are partly attributable to a delay in the delivery of power-grid control equipment in Japan.

For the full year ending next month, Toshiba cut its operating profit projection to 20 billion yen from 60 billion yen and the net profit estimate to 870 billion yen from 920 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press