Home >Companies >Toshiba posts smaller Q1 loss than expected

Toshiba posts smaller Q1 loss than expected

Toshiba posts smaller Q1 loss than expected

Tokyo: Japan’s Toshiba Corp reported a smaller-than-expected quarterly operating loss on Wednesday thanks to solid chip prices, and stuck to its forecast for a return to profit this year on cost cuts.

Toshiba, the world’s No.2 maker of NAND-type flash memory chips, is hurrying to invest in new technologies to keep up with sector leader Samsung Electronics Co, whose chip operations returned to a profit on a nascent chip recovery.

Chronic losses on semiconductors prompted Toshiba, the owner of US nuclear power firm Westinghouse, to raise $5 billion to shore up its finances and rein in chip output earlier this year, as it awaits nuclear power plant revenues.

Toshiba stuck to its 100 billion yen ($1.1 billion) operating profit forecast for the full year to next March as it cuts costs. That is far above the average forecast by 18 analysts polled by Thomson Reuters for a profit of ¥29.7 billion.

Toshiba said its operating loss totalled ¥37.6 billion in April-June, against a ¥22.9 billion loss a year earlier. It beat the consensus for a ¥52.6 billion loss forecast by 3 analysts.

It posted a net loss of ¥57.8 billion, against an ¥11.6 billion loss a year earlier on a 17% fall in sales.

Ahead of the results Toshiba shares rose 0.5%, against a 1.3% gain in Tokyo’s electrical machinery subindex.

Its shares rose 38% in April-June as its $5 billion fund raising allayed fears about its finances, outpacing a 25% rise in the subindex.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Edit Profile
My Reads Redeem a Gift Card Logout