Toshiba Reports Best Profit in Two Years
Toshiba Corp reported its highest quarterly profit in two years on Wednesday as the industrial conglomerate moves on from accounting scandals and a management crisis.
The company reported an operating profit of 44.23 billion yen ($405.41 million) for the second quarter ended September, up from 6.25 billion yen a year prior, as it cut costs and reined in low-margin infrastructure projects.
Toshiba has shifted its focus to profits from scale since massive accounting scandals that eventually led to the bankruptcy of U.S. nuclear power unit Westinghouse and the sale of its prized memory chip unit.
It has also overhauled its board to hike the number of external directors and include non-Japanese directors for the first time in 80 years, bowing to pressure from activist investors.
For the year ending March, Toshiba maintained its profit forecast 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.
The company also said it would 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.
Toshiba's five-year plan aims for 8-10% operating profit margin for the year ending in March 2024 by focusing on energy, social infrastructure and service businesses.