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.