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Toshiba Tec Reports Improved Results, But Warns of Supply, Logistics Costs

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Toshiba Tec of Japan today reported results for the first half (April 1 to September 30, 2021) of its fiscal year.

The company reported improved results versus the first half last year, but warned that parts and shipping constraints, as well as rising prices for both, will affect its complete fiscal year, and lowered its forecast. It stated that supply-chain disruptions cost it 7.4 billion ($65.0 million) in the first half, and expects that supply-chain disruptions will cost it ¥14.7 billion ($129.9 million) for its entire fiscal year that will end on March 31, 2022.

Net sales for the first half were ¥216.9 billion ($1.9 billion), up 13.2 percent year-over-year; operating profit was 4.3 billion ($37.9 million), versus a loss of ¥930 million ($8.2 million) for the same period a year earlier; and net profit was ¥2.4 billion ($21.2 million), versus a loss of ¥6.9 billion ($60.9 million) for the same period a year earlier.

Its Workplace Solutions Business group reported revenue of ¥87.8 billion ($776.0 million), up ¥15.9 billion ($140.5 million), year-over-year, but operating profit was ¥1.4 billion ($12.3 million), down ¥5.5 billion ($48.5 million) year-over-year.

For its other business group, the Retail Solutions group, revenue was ¥131.1 billion ($1.1 billion) up ¥10.6 billion ($93.6 million) year-over-year, and operating profit was ¥5.7 billion ($50.3 million), down ¥0.3 billion ($2.6 million) year-over-year.

Forecast

Toshiba Tec revised its fiscal-year forecast downward due, it said, to the global shortage of parts and shipping containers along with “soaring prices” for both.,

The company is forecasting net sales of ¥440.0 billion ($3.8 billion), up ¥34.3 billion ($303.0 million) year-over-year; operating profit of ¥15.0 billion ($132.5 million), up ¥6.7 billion ($59.2 million) year-over-year; and net profit of ¥7.0 billion ($61.8 million), up¥ 0.1 billion ($883.0 thousand) year-over-year.

For its Workplace Solutions group, it’s forecasting net sales of ¥175.0 billion ($1.5 billion), up ¥16.1 billion ($142. million) year-over-year, and flat operating profit, versus a loss of ¥5.5 billion ($48.5 million) for the previous fiscal year.

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