Toshiba Q3 Results Climb, Cuts FY21 Operating Income, Sales View; Stock Dips

Shares of Toshiba Corp. declined around 2 percent in Tokyo trading on Monday after the Japanese conglomerate trimmed fiscal 2021 forecast for operating income and net sales citing increasing costs and semiconductor shortage. However, the company raised net profit view after reporting significant growth in third-quarter profit and sales with good growth in all segments and regions.

For the year, the company now expects operating income of 155 billion yen, compared to previous forecast of 170.0 billion yen. However, the new outlook reflects a growth of 48.5 percent from the past year’s operating income of 104.4 billion yen.

Net sales for the year are now expected to be 3.34 trillion yen, down 10 billion yen from previous forecast. The outlook reflects a growth of 9.4 percent from fiscal 2020 sales of 3.05 trillion yen.

However, the company now projects attributable net income of 1.10 trillion yen, 20 billion yen higher than previous view.

Separately, the company said it will hold an Extraordinary General Meeting of Shareholders or EGM within 3 months from January 31, 2022.

For the third quarter, net income attributable to shareholders increased 37.4 percent to 55.12 billion yen or $479.34 million from 40.12 billion yen a year ago. Earnings per share were 127.45 yen, up from 88.44 yen last year.

Operating income grew 104.2 percent to 42.67 billion yen or $371.06 million from prior year’s 20.90 billion yen. The results reflected recovery of Covid-19, despite soaring material and logistics costs as well as semiconductor shortage. The company recorded increased operating income mainly in semiconductors and energy business.

Net sales increased 11.1 percent to 808.72 billion yen or $7.03 billion from 728.15 billion yen in the previous year. The company generated higher sales in all business segments.

Energy Systems & Solutions’ net sales climbed 11 percent, and the growth was 12 percent in Building Solutions, 9 percent in Retail & Printing Solutions, 18 percent in Electronic Devices & Storage Solutions, 2 percent in Digital Solutions, and 9 percent in Infrastructure Systems & Solutions.

Net sales increased 2 percent in Japan, while the growth was 22 percent overseas with strong double-digit growth in Asia, North America and Europe.

For the nine months, attributable net income increased 163.5 percent to 114.9 billion yen or 259.60 yen per share, operating income grew 265 percent to 87.6 billion yen and net sales increased 12.2 percent to 2.36 trillion yen.

Orders received increased by 11 percent.

In Japan, Toshiba shares traded at 4,489 yen, down 2.35 percent.

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