Toshiba’s Q3 Earnings Rise, FY21 Operating Profit Decline, Sales View; Stock market dips

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(RTTNews) – Shares of Toshiba Corp. fell about 2% in Tokyo trading on Monday after the Japanese conglomerate cut its forecast for operating profit and net sales for fiscal 2021 citing rising costs and shortages of semiconductors . However, the company raised its net profit view after announcing significant growth in earnings and sales in the third quarter with good growth in all segments and regions.

For the year, the company now expects operating profit of 155 billion yen, down from a previous forecast of 170.0 billion yen. However, the new outlook reflects growth of 48.5% over last year’s operating profit of 104.4 billion yen.

Net sales for the year are now expected to reach 3.34 trillion yen, down 10 billion yen from the previous forecast. The outlook reflects 9.4% growth from fiscal 2020 sales of 3.05 trillion yen.

However, the company now expects attributable net profit of 1.1 trillion yen, up 20 billion yen from the previous forecast.

Separately, the company said it would hold an Extraordinary General Meeting of Shareholders or EGM within 3 months from January 31, 2022.

For the third quarter, net profit attributable to shareholders rose 37.4% to 55.12 billion yen or $479.34 million from 40.12 billion yen a year ago. Earnings per share were 127.45 yen, compared to 88.44 yen last year.

Operating profit rose 104.2 percent to 42.67 billion yen or $371.06 million from 20.90 billion yen a year earlier. The results reflect the recovery from Covid-19, despite soaring material and logistics costs as well as shortages of semiconductors. The company recorded an increase in operating income mainly in semiconductors and energy.

Net sales rose 11.1 percent to 808.72 billion yen or $7.03 billion from 728.15 billion yen a year earlier. The company generated higher sales in all business segments.

Energy Systems & Solutions net sales increased 11%, and growth was 12% in Building Solutions, 9% in Retail & Printing Solutions, 18% in Electronic Devices & Storage Solutions, 2% in Digital Solutions and 9% in Infrastructure Systems. & Solutions.

Net sales increased 2% in Japan, while growth was 22% overseas with strong double-digit growth in Asia, North America and Europe.

For the nine months, attributable net profit increased 163.5% to 114.9 billion yen or 259.60 yen per share, operating profit increased 265% to 87.6 billion yen and net sales rose 12.2% to 2.36 trillion yen.

Orders received increased by 11%.

In Japan, Toshiba shares traded at 4,489 yen, down 2.35%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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