Cost Cuts Propel Tosh Profit – But Memory Chips Stall
Japanese conglomerate Toshiba, which has recently struggled under the weight of bad investment and top-level scams, has had a dramatic turnaround.
Tosh’s H2 operating profit ending September was 50 billion yen (A$667 million), roughly seven times that of the same period last year.
Profitability improved in a wide range of sectors, including Tosh’s mainstay infrastructure and energy units, largely due to widespread cost cuts.
But net income was in negative territory, largely due to the company’s 40% stake in semiconductor memory company Kioia,, formerly Toshiba Memory, and its US liquified gas business.
Last year Toshiba sold its PC business to Sharp and exited its struggling US nuclear power plant business.