Toshiba's operating profit boosted 178 percent; overshadowed by net loss

Hit by sluggish chip sales, the technology giant's Q1 results offer a mixed bag.
Written by Charlie Osborne, Contributing Writer

Toshiba Corporation, developer of consumer electronics, semiconductors and whose other operations include energy manufacture, said Tuesday that in the first quarter, it suffered a net loss due to restructuring costs and the high value of the yen proved to outweigh profit margins gained from its power plant business.


The Japanese technology giant reported a 12.11 billion yen ($154.96 million) net loss through the April to June quarter. In comparison, the company made a 470 million yen profit ($6 million) last year.

However, its operating profit jumped 178.4 percent -- from 4.12 billion yen last year ($52.65 million) to 11.47 billion yen ($147 million) in the first quarter; boosted by strong overseas profits.

Revenue slid 4.3 percent; from 1.326 trillion yen ($16.947 billion) to 1.269 trillion ($16.219 billion).

Last week, Toshiba said it was cutting down the manufacture of flash-memory chips by 30 percent -- of which Apple is one of their biggest clients -- in order to clear away some of its inventories after suffering weak demand for these types of chips. Flash memory chips are used to store data, often within mobile devices such as the iPhone.

The technology conglomerate's predictions for the current fiscal year, ending March 2013, have remained unchanged after the released Q1 results. The company still expects a net profit of 135 billion yen ($1.72 billion), an operating profit of 300 billion yen ($3.83 billion), and sales of 6.40 trillion yen ($81.79 billion).

The earnings were reported under standard United States accounting practices.

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