Toshiba’s Profits Slow After Sale of Memory-Chip Business

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Toshiba Corporation of Tokyo, Japan, reported results for the first half (April 1 to September 30, 2018) of its fiscal year that ends in March 2019, with operating profit falling 80 percent year-over-year, a reflection of the sale of its memory-chip business, which had previously generated significant revenues for the company.Operating profit for the first half was 6.9 billion yen ($61 million).

Sales were also down 5 percent year-over-year to 1.77 trillion yen. Net profits were 1.08 trillion yen, boosted by Toshiba’s  sale of its memory-chip business in June 2018.

For its complete fiscal year, Toshiba is forecasting a 14-percent increase in net profits – again boosted by the sale of its memory-chip business – to 920 billion yen. However, it expects an 8.8-percent drop in sales, to 3.6 trillion yen.

As part of a five-year program, Toshiba also expects to sell its U.S.-based liquefied natural-gas business to a private Chinese company. It will also 7,000 jobs, or about 5 percent of its workforce; and liquidate its British nuclear-power business.

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