Toshiba Climbs After Returning to Quarterly Operating ProfitBy
Company returns to profit after six quarters of losses
Full-year outlook kept intact as Toshiba’s business recovers
Toshiba Corp. shares rose on Friday after the electronics maker reported its first operating profit in six quarters and kept its outlook for the fiscal year intact.
The company reported an operating profit of 20 billion yen ($196 million) for the first fiscal quarter on sales of 1.21 trillion yen. Toshiba rose 3.8 percent to 274 yen at the close in Tokyo, a , a three-week high. The stock is up 9.6 percent this year after a 51 percent slump in 2015.
Toshiba, which makes everything from computers to nuclear power equipment, posted record losses after an accounting scandal upended the Tokyo-based company and its management. The manufacturer is cutting thousands of jobs, shedding operations and narrowing the scope of its businesses as it seeks to recover from the ordeal.
For the first half, Toshiba expects an operating profit of 30 billion yen on 2.47 trillion yen in sales, up from the prior forecast in May, thanks to stable memory chip prices and an improvement in its computer storage business. The full-year outlook was kept intact, however, due to a stronger yen and economic uncertainties, the company said.
Toshiba said to anticipates operating profit of 120 billion yen on revenue of 5.1 trillion yen in the current fiscal year.