Economic|Interim reports
The Japanese company’s result suffered from weak demand for hard drives, as its customers reduced their IT investments.
Japanese the conglomerate Toshiba says that its results have weakened by almost 90 percent in October-December and calculates its profit guidance for the current fiscal year.
The company also announced that its chief operating officer Goro Yanase has resigned due to improper use of representation expenses.
According to Toshiba, Yanase used representation expenses inappropriately in 2019, when he was managing a subsidiary focused on Toshiba’s energy systems and solutions. Contrary to the company’s expense policy, Yanase did not indicate the names of those who participated in the representative meetings in the expense records.
Toshiba’s operating profit decreased by 88 percent in the third quarter of the company’s financial year to 5.3 billion Japanese yen (approximately 37.4 million euros). That was clearly less than the 37 billion yen expected by analysts in the consensus forecast collected by information service Refinitiv.
News agency According to Reuters, the company said its earnings suffered from weak demand for hard drives as its customers cut back on IT investments. The company also made a large write-down on the old energy system project.
Toshiba lowered its profit guidance. The company now estimates that its profit for the fiscal year ending in March will be around 95 billion yen. The previous estimate was 125 billion yen. According to Reuters, it was already the second decline in the outlook this financial period.
A purchase offer has been made for Toshiba. Last week, a group of investors led by the Japanese private equity investor Japan Industrial Partners offered to buy the company.
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