Toshiba (OTC:TOSYY) Corp., a Japanese multinational conglomerate, reported on Tuesday a significant Q2 net loss and a decrease in net sales compared to the same quarter last year, as the company navigates its transition to private ownership. Despite the downturn, Toshiba's full-year operating income forecast remains unchanged.
The company posted a net loss of 26.74 billion yen ($178.29 million) for the second quarter, a sharp reversal from the 74.77 billion yen income reported in the previous year's Q2. Net sales also fell from 854.56 billion yen last year to 793.55 billion yen this year, reflecting weaker performance across several of its business segments.
Toshiba's Energy Systems & Solutions sales saw an 11 percent drop, while Building Solutions sales declined by 22 percent. Electronic Devices & Storage Solutions and Digital Solutions both experienced decreases in sales by 7 percent and 6 percent, respectively. The company also noted that overseas sales dipped by 15 percent due to poor performance in Asia, North America, and Europe.
Despite these challenges, some areas of Toshiba's business showed resilience. Infrastructure Systems & Solutions sales grew by 1 percent, and Retail & Printing Solutions saw an increase of 4 percent. Sales in Japan showed a slight uptick, and other regions combined for an 8 percent rise in sales. Additionally, Toshiba reported a 15 percent increase in orders received for large-scale projects and a steady growth in order backlog.
In light of the current financial results, Toshiba has revised its FY2023 predictions to anticipate a net loss of 5 billion yen, which deviates from the previously projected profit of 30 billion yen. However, the company is maintaining its targets for operating profit at 110.0 billion yen and projects an annual net sales decrease of around 3.20 trillion yen, which is a 4.8% decline from earlier estimates.
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