APD | Toshiba’s profit highest in two years

By APD writer Alice

Japan’s Toshiba Corp on November 13 said it enjoyed the highest quarterly profit in two years as it cut costs and reined in low-margin infrastructure projects.

The company’s operating profit hit a much stronger-than-expected 44.23 billion yen ($405.41 million) in the second quarter ended September, up from 6.25 billion yen a year earlier.

The figure was much higher than a 25.97 billion yen average of four analyst estimates compiled by Refinitiv.

Toshiba maintained its profit forecast for the fiscal year which ends in March 2020 at 140 billion yen, versus 35.4 billion yen a year earlier, in line with the target the company set in its five-year plan.

Its five-year plan targets an operating profit ranging from 8% to 10% for the year ending in March 2024 by focusing on energy, social infrastructure and service businesses.

The company also announced that it will buy out three of its listed subsidiaries and launch tender offers for plant engineering firm Toshiba Plant Systems & Services, marine electrical systems maker Nishishiba Electric, chip-making equipment maker NuFlare Technology to convert them into wholly owned units.

(ASIA PACIFIC DAILY)