Categories: Business

Toshiba returns to Q1 profit on demand for automotive chips

Toshiba Corp said that it swung back to profit in the first quarter, as the sales of automotive chips and hard disk drives recover from a pandemic-driven slump in demand. The scandal-hit Japanese conglomerate also said that it has been working on the selection of candidates for a permanent CEO and board chairman. Satoshi Tsunakawa, a veteran Toshiba executive who has taken on both positions in an interim capacity, told that he hopes an extraordinary shareholders meeting to appoint a new board chairman will be held by the end of this year.

Toshiba posted an operating profit of 14.5 billion yen ($132 million) for April-June. It was its fourth consecutive quarter of operating profit. Its estimate of 170 billion yen in operating profit for the full year was unchanged. An independent investigation concluded that Toshiba colluded with Japan’s powerful trade ministry to block investors from gaining influence at last year’s general meeting. This is an explosive finding that resulted in the ouster of its board chairman. Toshiba’s previous CEO left in April over controversy about a $20 billion buyout bid from CVC Capital Partners. That in turn has prompted Toshiba to promise a strategic review.

Tsunakawa said that Toshiba was working on the review. He also, reiterated that it was open to take-private bids although it has not received any other offers. Toshiba plans to announce a new midterm business plan in October. This is as it is still struggling to build new profit drivers after the sale of the prized memory chip unit and the bankruptcy of the U.S. nuclear business, both of which occurred in the wake of accounting scandals.

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