Toshiba boosts profits on devices, auto sector demand
TOKYO (AP) — Toshiba reported a 44% improvement in earnings last quarter as the Japanese tech giant worked to revamp its brand image and reassure investors of its management.
Tokyo-based Toshiba Corp. said on Wednesday it posted a profit of 25.9 billion yen ($192 million) in the April-June period, up from 18 billion yen a year earlier. Quarterly sales rose nearly 2% to 740.7 billion yen ($5.5 billion).
Toshiba promised to boost sales by moving forward with clean energy, infrastructure projects, data services, devices and storage businesses. Profitability improved for electronic devices, storage and digital solutions, and demand was good in the automotive sector, he said.
In March, investors rejected a company-backed reform proposal to split Toshiba into two companies. An earlier plan that was also scrapped called for a three-way split.
Toshiba has been studying privatization as it tries to move forward with its restructuring plan. It has set up a special committee that includes outside directors to oversee restructuring efforts.
Founded in 1875, Toshiba was a revered Japanese brand behind electric rice cookers and laptop computers. He sold his valuable flash memory business as his fortunes plummeted.
The company has been struggling since the Fukushima nuclear disaster in March 2011. A tsunami sent three reactors melting, spewing radiation into an area that is still partly a no-go zone. The company is involved in the dismantling effort, which will take decades.
It has also been embroiled in trouble at its former US nuclear unit Westinghouse Electric, which filed for bankruptcy protection in 2017.
His reputation was also tarnished by an accounting scandal, involving books that had been doctored for years.
Toshiba officials declined to comment on the direction of its nuclear business, noting that Wednesday’s event focused on finances. They said a review was continuing.