However, Toshiba did not explain where its future growth sources will come from the absence of a valuable flash memory chip business. The company's remaining major businesses, such as energy and social infrastructure, are struggling to fill the gap left by the chip business. Last year, Toshiba's chip business accounted for 90% of the company's total operating profit.
Toshiba’s earnings report today showed that the company’s flash-chip business (the world’s second-largest NAND chip maker) recorded a profit of 966 billion yen in its external sales transactions, and the company’s net profit for the fourth quarter to June was 1.02 trillion yen. US$ 9.16 billion), up from 50.33 billion yen in the same period last year.
Toshiba’s net profit performance for the quarter was better than analysts’ expectations. Previously, the average estimate of four analysts surveyed by research firm Thomson Reuters I/B/E/S was that Toshiba’s net profit for the quarter was 570.29 billion days. yuan.
Toshiba will maintain its profit forecast for the fiscal year ending March next year at 1.07 trillion yen, lower than the previous forecast of 11.1 trillion yen by 12 analysts.
The billions of dollars generated by Westinghouse, the US nuclear power business, and the company’s accounting scandal have caused Toshiba to remain in financial crisis for several years. Therefore, the external sale of its chip division will help reverse Toshiba. The dilemma of the company.
In accordance with a deal with the Bain Capital Consortium, Toshiba repurchased 40% of its chip business.
Toshiba has promised to return the proceeds from the sale of the chip business to shareholders, responding to calls for aggressive shareholders to demand greater returns. These shareholders participated in the $5.4 billion stock issue at the end of last year, helping to avoid the removal of Toshiba stocks by the stock exchange.
After that commitment, Toshiba announced a higher-than-expected $6.3 billion stock repurchase program in June.
As of the end of March, more than 70% of Toshiba's shareholders were overseas institutions, and it was considered more blunt than the Japanese counterparts in requesting management.