Toshiba logs surprise quarterly operating loss on higher materials costs

10 August, 2022
Toshiba logs surprise quarterly operating loss on higher materials costs
Toshiba Corp on Wednesday posted an unexpected operating loss in the April-June first quarter as it grappled with a global chip shortage and a sharp rise in costs for raw materials.

The loss of 4.8 billion yen ($35.6 million), its first quarterly loss in two years, compares with a profit of 14.5 billion yen a year earlier and a consensus estimate of a 19.4 billion yen profit from four analysts polled by Refinitiv.

Higher material and logistics costs pushed down its operating earnings by 9.4 billion yen, while a chip shortage had a negative impact of about 3 billion yen, the company said. But the scandal-laden Japanese industrial conglomerate, which is exploring going private and other options, maintained its profit forecast for the year ending March at 170 billion yen, up 7 per cent from the previous year.

Bain Capital, CVC Capital Partners and Brookfield Asset Management as well as a consortium involving state-backed Japan Investment Corp and private equity firm Japan Industrial Partners have been selected by Toshiba to proceed to a second bidding round.

A buyout of Toshiba could value the firm at as much as $22 billion, sources have previously told Reuters.

Tensions between Toshiba and its activist investors culminated last year when a shareholder-commissioned investigation concluded management had colluded with Japan's trade ministry - which sees the company's nuclear and defence technology as a strategic asset - to block overseas investors from gaining influence at its 2020 shareholder meeting.

This year, shareholders rejected management-backed plans to split the company in two, prompting Toshiba to restart a strategic review.
Source: www.channelnewsasia.com
TAG(s):
Search - Nextnews24.com
Share On:
Nextnews24 - Archive