Toshiba Bracing for 15 Pct Drop in Operating Profit
Tokyo, June 5 (Jiji Press)--Toshiba Corp. <6502> said Friday that its group operating profit in fiscal 2020 through March next year is expected to plunge 15.7 pct from the previous year to 110 billion yen, due to the impact from the new coronavirus outbreak.
The coronavirus crisis is projected to push down the Japanese machinery maker's operating profit by 90 billion yen, company officials said. Demand for elevators and semiconductors for automobiles is seen dropping.
Toshiba's group sales are estimated at 3.18 trillion yen, down 6.2 pct, with the coronavirus crisis expected to dent sales by 280 billion yen.
"Demand has disappeared (for some products), and our product supplies have been delayed due to supply-chain disruptions," Toshiba Corporate Senior Vice President Masaharu Kamo said.
After seeing its debts exceed assets in fiscal 2016 due to massive losses from its U.S. nuclear business, Toshiba started to shift its focus to social infrastructure operations while selling memory chip and home appliances operations, which are susceptible to economic fluctuations.
[Copyright The Jiji Press, Ltd.]