TOKYO (Reuters) – japanese Toshiba Corp posted its highest quarterly profit in two years on Wednesday, and said that it will buy out its three publicly traded subsidiaries, as well as the industrial conglomerate, is moving on from the accounting scandal and a crisis management team.
FILE PHOTO: The logo of Toshiba Corp is seen at its headquarters in Tokyo, Japan, on 23rd January, 2017. (REUTERS photo/Toru Hanai/File Photo
Toshiba has reported a much stronger-than-expected operating profit of 44.23-billion-yen ($405.41 million for the second quarter ended September, of € 6.25 billion yen a year earlier, as it is a cost-effective and kept to a low-margin infrastructure projects.
That is, compared to 25.97 billion yen, the average of the 4 and analyst estimates compiled by Refinitiv.
Toshiba maintained its full-year sales forecast for the fiscal year that ended in March to 140 billion yen, compared to 35.4 billion yen a year earlier, in line with the objectives of the company, the company is in a period of five years.
The company also said it would launch tenders for a plant engineering company, Toshiba Plant Systems & Services, marine electrical systems maker, Nishishiba Electric, a chip-equipment maker, NuFlare Technology, to convert them into wholly owned units.
The move comes as some of the activist shareholders have been pushing for more action, called for a review of the extensive portfolio.
The Japanese government has also pointed to potential conflicts of interest between the publicly listed parent companies and their listed subsidiaries, and a set of corporate governance guidelines of those companies.
Toshiba has shifted its focus to the gain on the scale since the massive accounting scandals that eventually led to the bankruptcy of the U.S. nuclear power unit Westinghouse, and the sale of prized memory, the chip unit.
It has also overhauled its board of directors, in order to be a walk in the number of outside directors non-Japanese directors, and for the first time in 80 years, bowing to pressure from activist investors.
Her five-year-plan for the 8 to 10% operating margin target for the year ending in March 2024, by focusing on energy, social, infrastructure, and service companies.
Reporting Makiko Yamazaki; Editing by Christian Schmollinger