Toshiba reports 75% plunge in Q2 operating profit, cuts full-year outlook

JAPAN’S Toshiba Corp on Friday (Nov 11) reported a 75 per cent slump in second-quarter operating profit and lowered its full-year earnings outlook after logging an appraisal loss for its printing business.

It posted an operating profit of 7.54 billion yen (S$73.4 million) for the July-September quarter. The result compared with a consensus estimate of 36.9 billion yen from four analysts polled by Refinitiv.

Toshiba, which is exploring options for a buyout, cut its profit forecast for the year ending March to 125 billion yen from 170 billion yen.

The earnings outlook for Toshiba could have implications for would-be buyers of the conglomerate, given that Japanese banks are cautious about financing a buyout deal, sources say.

A consortium led by private equity fund Japan Industrial Partners (JIP) submitted a bid to buy Toshiba for around US$15 billion that lacks key commitments from banks, the Nikkei newspaper said on Monday, raising questions about whether the offer can succeed.

Another potential bidder, state-backed fund Japan Investment Corp (JIC), is also preparing a proposal, according to sources. The fund has been in talks with US private equity fund Bain Capital and north Asia fund MBK Partners to form a separate consortium, the sources said. REUTERS