Mixed Results for Toshiba Tec, But Office MFPs See Strong Growth

On May 10th, Toshiba Tec of Japan reported financial results for its fourth quarter and full year, with both ending on March 31, 2024.

The bad news was that the company reported losses for its full year, but the good news was that its financials improved in the fourth quarter, and the Workplace Solutions business showed strong growth for the quarter and year.

Fourth Quarter

Toshiba Tec’s fourth-quarter net sales were ¥151.4 billion ($972.26 million), up 9.8 percent year-over-year, and operating profit was ¥6.4 billion ($41.09 million), up 32.81 percent year-over-year. 

Workplace Solutions Business

(The Workplace Solutions business markets office MFPs, auto ID systems, and inkjet print heads.)

For the fourth-quarter, Workplace Solutions business net sales were ¥65.5 billion ($420.63 million), up 10.08 percent year-over-year, and operating profit was ¥3.8 billion ($24.40 million), up 68.42 percent year-over-year.

Full Year

Toshiba Tec’s full-year net sales were ¥548.13 billion ($3.52 billion), up 7.3 percent year-over-year, but operating profit was ¥15.85 billion ($101.79 million), down 1.4 percent year-over-year, and net income was a loss of ¥6.70 billion ($43.02 million), versus a loss of ¥13.74 billion ($88.23 million) for the previous fiscal year.

The company said that regarding profit, despite the significant improved profitability of office MFPs, profit for the Retail Solutions businesses’ point-of-sale (POS) systems for overseas markets deteriorated significantly, resulting in operating profit that was down 1.4 percent year-over-year.  Regarding the net income loss, the reversal of deferred tax assets at some U.S. subsidiaries under the Retail Solutions business and other factors resulted in  a loss of ¥6.70 billion ($43.02 million) – compared with a loss of ¥13.74 billion ($88.23 million) for the previous fiscal year).

Workplace Solutions Business

Full-year net sales for the Workplace Solutions business were ¥241.6 billion ($1.55 billion), up 10 percent year-over-year, and operating profit was ¥13.6 billion ($87.33 million), up 51 percent year-over-year. 

Sales of MFPs increased due to the impact of foreign-exchange rates, in addition to strong sales in the Americas, Europe, and other regions, reflecting a recovery from product supply disruptions, as well as increased selling prices.

Toshiba Tec plans to expand: sales of its office MFPs in overseas and domestic markets;  auto ID systems in overseas markets; and inkjet print heads in domestic and overseas markets.

And, as previously reported, the company plans to transfer its development and manufacturing of MFPs and auto ID systems to ETRIA Company, the joint venture between Toshiba TEC and Ricoh, on July 1, 2024. 

Toshiba Tec will also transfer all its inkjet print-head business to RISO KAGAKU Corporation, also on July 1, 2024.

Forecast

For its fiscal year that will end on March 31, 2024, Toshiba Tec is forecasting net sales of ¥550 billion ($3.53 billion), up 0.36 percent year-over-year; operating profit of ¥18 billion ($115.59 million), up 16.67 percent year-over-year; and net income of ¥20 billion ($128.44 million) versus a loss for the previous year.

More Resources

• May 2024: Toshiba Tec Revises Forecast, Now Expects Loss
• February 2024: Toshiba Tec Reports Losses, Lowers Forecast
• February 2024: Ricoh, Toshiba Tec Complete Create New Venture, Provide New Details
• November 2023: Strong Financial Results for Toshiba Tec as Workplace Business Solutions’ Profit Soars
• August 2023: Toshiba Tec to Transfer Toshiba Tec Europe to Joint Venture with Ricoh
• August 2023: Toshiba Tec and its Workplace Solutions Business Report Soaring Profit Growth