- Title: Toshiba gain operating profit after Westinghouse detachment
- Date: 15th May 2017
- Summary: TOKYO, JAPAN (MAY 15, 2017) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** TOSHIBA CORP HEADQUARTERS TOSHIBA LOGO NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Japanese) TOSHIBA CORP CEO, SATOSHI TSUNAKAWA, SAYING: "With Westinghouse excluded as a detached business, the operating profit for the 2016 financial year is 270 billion yen ($2.4 billion)." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Japanese) TOSHIBA CORP CEO, SATOSHI TSUNAKAWA, SAYING: "The net loss for financial year of 2016 is regrettably, 950 billion yen ($8.4 billion)" PHOTOJOURNALIST (SOUNDBITE) (Japanese) TOSHIBA CORP CEO, SATOSHI TSUNAKAWA, SAYING: "We take it seriously that we calculated such a huge net loss, and from 2017 onwards we will be putting efforts in our financial standings." NEWS CONFERENCE IN PROGRESS
- Embargoed: 29th May 2017 10:13
- Keywords: Japan Accounting Earnings Toshiba
- Location: TOKYO, JAPAN
- City: TOKYO, JAPAN
- Country: Japan
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0016GY81OT
- Aspect Ratio: 16:9
- Story Text:Toshiba Corp said on Monday (May 15) it had an operating profit of 270 billion yen ($2.4 billion) in the 2016 financial year, while it also forecasted a 50 billion yen ($440 million) net profit for financial year of 2017, a turnaround from an estimated loss of 950 billion yen ($8.4 billion) in the year just ended due to losses related to Westinghouse.
The estimate for this business year excludes earnings from its chip unit and its smart meter subsidiary Landis+Gyr - both of which it plans to sell to help dig itself out of a financial crisis.
In its unaudited earnings release, Toshiba said it expects to have a negative net worth of 540 billion yen ($4.7 billion) at the end of March if it fails to raise funds from the sale of its prized chip unit soon.
The earnings release came as Western Digital Corp sought international arbitration to stop partner Toshiba Corp from selling its chips arm without its consent, potentially derailing a much-needed capital injection for the Japanese conglomerate.
Although the two companies jointly operate Toshiba's main semiconductor plant, Western Digital is not seen as a favoured bidder for the world's second biggest NAND chip producer, having put in a much lower offer than other suitors, a source with knowledge of the matter has said.
A legal battle could delay or put an end to the auction that could fetch some $18 billion and has attracted suitors such as private equity firm KKR & Co LP, Taiwan's Foxconn and U.S. chipmaker Broadcom.
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