(Official website screenshot)
As concerns about the global economic slowdown have intensified, Toshiba has been reassessing the business environment and the risks facing each sector. Based on the results of the assessment, the company plans to record additional provisions for operations including energy.
Difficulties in existing businesses such as system chips have also dragged down earnings. Toshiba Tec, which produces POS systems, is performing strongly, and its performance is expected to exceed the outlook given last fall, but this is not enough to offset the overall weakness of the company.
Railway systems and air conditioning business may become a bright spot. Group revenues are likely to be close to the previous forecast of 3.6 trillion yen, down from nearly 4 trillion yen last year. This is partly due to the weakness of the yen exchange rate.
Last fall, Toshiba estimated that the group's annual net profit will be 920 billion yen, an increase of 14%. This is mainly due to the sale of the semiconductor storage business Toshiba Memory. However, led by Bain Capital, a consortium of buyers from the US, South Korea and Japan is stepping up its review of the company's assets. According to equity ownership, Toshiba Memory is still a subsidiary of Toshiba. Toshiba’s profits may be affected if the accounting process results in new fees.
Toshiba will maintain its medium-term plan to achieve operating profit of 400 billion yen by the end of March 2024. To achieve this goal, Toshiba plans to record the necessary expenses as much as possible into the current earnings period and begin to focus on promising areas such as the Internet of Things.