According to media reports on February 11, due to factors such as increased energy business expenses, Japanese technology giant Toshiba plans to cut its FY18 earnings forecast by at least half. The company expects annual operating profit for the fiscal year ending March 31, 2019 to be between 20 billion and 30 billion yen (approximately US$180 million to US$270 million), and the company will be in November 2018. The published performance guidelines are expected to reach 60 billion yen ($5.47) in operating profit in FY18.
According to the report, Toshiba will reserve an additional energy reserve to help respond to changes in the energy industry, resulting in rising energy business costs that have dragged down the core business; in addition, the company announced in November 2018 that it would close its NuGen in the UK. The nuclear power company also withdrew its liquefied gas business in the United States, and the resulting expenses were also higher than expected. At the same time, due to the sluggish semiconductor industry in the second half of 2018, the operating profit of Toshiba's chip business was also 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.