The Strategist

Toshiba's net profit grows by 7% for a year

05/13/2019 - 12:53

Net profit of the Japanese Toshiba Corporation for the 2018-2019 fiscal year ended March 31, increased by 7% to 1.013 trillion yen ($ 9.2 billion), according to the company’s reports.

FuFuWolf via flickr
FuFuWolf via flickr
Earnings per share for the year stood almost unchanged, and just rose to 1.641 thousand yen ($ 14.9) from 1.628 yen ($ 14.8).

Revenue decreased by 6.5% to 3.693 trillion yen ($ 33.5 billion), operating profit fell 2.42 times to 35.4 billion yen ($ 319.3 million).

The company expects revenue for the 2019-2020 fiscal year at 3.4 trillion yen and operating profit at 140 billion yen.

Earlier, new Toshiba executives presented a five-year strategy aimed at minimizing losses. Getting rid of non-core assets, the company conducts business restructuring amid falling profits. So, in September 2018, the Toshiba group's profit decreased by 80.7% compared with the same period last year.

As part of the strategy, the Japanese conglomerate has already announced liquidation of its British subsidiary NuGen, which was to build nuclear power plants in the United Kingdom. The company tried to sell this division, but negotiations with potential buyers turned out to be unsuccessful.

As part of the restructuring, Toshiba also intends to make a serious reduction of staff: the company management has already announced plans to fire approximately 2 thousand people.

The Japanese company Toshiba is leaving the business to produce liquefied natural gas in the United States.