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Toshiba quarterly profit jumps on cost cuts, but misses estimates

A FILE PHOTO of Toshiba Corp’s logo is seen at its headquarters in Tokyo, Japan on the 29th of March, 2017. REUTERS/Issei Kato

TOKYO (Reuters) – japanese Toshiba Corp (6502.(T) reported on Wednesday a 10-fold jump in first-quarter operating profit as it stepped up cost-cuts across departments, as well as the earnings missed an analyst estimate.

The Japanese conglomerate, is consolidating factories, cutting jobs, and the renewal of the purchase method, in order to compensate for the loss of a valued chip in the business, was sold last year to plug a multi-billion-dollar in-balance sheet gap left by the demise of the U.S. nuclear-power unit.

Toshiba, however, is still struggling to grow profits in the company, which they see as the next growth drivers, such as batteries, power management devices, and medical devices.

The company posted an operating profit of 7.8 billion yen ($73.49 million) for the April-June quarter, up from 730 million yen a year earlier.

The results, compared to 11.63 billion yen, the average of the 3 and analyst estimates compiled by Refinitiv.

Toshiba may have an annual income estimated to be 140 billion yen, which is in line with the objectives of the company, the company is in a period of five years.

Reporting Makiko Yamazaki; Editing by Muralikumar Anantharaman and Shounak Dasgupta

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