Toshiba¡¯s profit for the 2018 fiscal year is at least halved! Chip business is dragged down

On February 11, according to Japanese media reports, due to factors such as increased energy business expenses and weak chip business, Japanese technology giant Toshiba plans to cut its FY18 earnings forecast by at least half.

The company expects annual operating profit for FY 2018 as of March 31, 2019 to be between 20 billion and 30 billion yen (about $180 million to $270 million), and the company is in November 2018. The published performance guidelines are expected to reach 60 billion yen ($5.47) in operating profit in FY18. From the data point of view, Toshiba's profit in FY 2018 is undoubtedly at least nearly 50%.

Toshiba explained that the profit has fallen sharply. In the energy sector, the company will book additional energy reserves to help respond to changes in the energy industry. The resulting increase in energy business costs has dragged down the core business. In addition, the company announced in November 2018 that it would close its NuGen nuclear power company in the UK and withdraw its liquefied gas business in the United States, resulting in higher-than-expected expenses.

It must be mentioned that Toshiba believes that the chip business is also a major factor in halving profits. Due to the sluggish semiconductor industry in the second half of 2018, the operating profit of Toshiba's chip business has also been dragged down.

However, Toshiba expects its point-of-sale system, rail system, and air-conditioning business to perform well. At the same time, the company plans to accelerate the development of the Internet of Things business to drive performance growth.Founded in July 1875, Toshiba Corporation is Japan's largest semiconductor manufacturer and Japan's second largest integrated motor manufacturer, affiliated to Mitsui Group. Toshiba's business areas include digital products, electronic components, infrastructure, and home appliances.

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