Toshiba Tec Reports Losses, Lowers Forecast

On February 7th, Toshiba Tec of Tokyo, Japan, reported financial results for its third quarter and last three quarters (nine-month period), which both ended on December 31, 2023.

The company reported disappointing financial results, but this appeared mainly due to weak results from its Retail Solutions business, which sells point-of-sale (POS) systems. Its other business, the Workplace Solutions  business – which sells MFPs, inkjet print heads, and auto ID systems – reported soaring operating profit for the nine-month period, up 20 percent year-over-year – although this slowed a bit in the third quarter.

(Note that Toshiba Tec is a subsidiary of Toshiba Corporation. However, as Toshiba Corporation officially became a privately owned company in December 2023, it is no longer required to provide financial results.)

Third Quarter

Toshiba Tec’s third-quarter net sales were ¥133.1 billion ($891.02 million), up 1.88 percent year-over-year, and operating profit was ¥3.6 billion ($24.1 million), down 37.93 percent year-over-year

Workplace Solutions business net sales were ¥59.7 billion ($399.65 million), up 1.84 percent year-over-year, and operating profit was ¥4.8 billion ($32.13 million), up 4.17 percent year-over-year. 

Toshiba Tec said its domestic Retail Solutions business and Workplace Solutions business performed well in the third quarter, while its overseas Retail Solutions  business posted lower sales and profit. 

Nine-Month Period

Toshiba Tec’s nine-month net sales were ¥396.71 billion ($2.65 billion), up 5.9 percent year-over-year; operating profit was ¥9.46 billion ($63.32 million), down 19.8 percent year-over-year; and net income was a loss of ¥14.71 billion ($98.48 million).

The company said net sales were up mainly due to increased sales of POS systems for the domestic market, and increased MFP sales, as well as the effect of favorable foreign-currency exchange rates.

On the profit front, despite the significantly improved profitability of MFPs and POS systems, profitably of POS systems for the overseas markets deteriorated significantly, resulting in operating profit that was down 20 percent year-over-year.

As for the net income loss, Toshiba Tec said that the reversal of deferred tax assets at some overseas subsidiaries under the Retail Solutions business, as well as other factors, resulted in a loss of ¥14.71 billion ($98.48 million) compared to a loss of ¥2.00 billion ($13.39 million ) for the nine-month period a year earlier.

Nine-month net sales for the Workplace Solutions business were ¥176.10 billion ($1.17 billion), up 11 percent year-over-year. Operating profit  soared to ¥9.85 billion ($65.94 million), up 74 percent year-over-year, which the company said was due to the increase in net sales resulting from recovery from product supply disruptions, increased selling prices, and other factors.


Toshiba Tec revised its forecast for its fiscal year that will end on March 31, 2024. The company’s forecast for operating profit and dividend will remain unchanged from the previous forecast, but income is reduced to break even – said to be due to the company’s plan to reverse some deferred tax assets related to a U.S. subsidiary Retail business and for other reasons.

Toshiba Tec is now forecasting net sales of ¥545.0 billion ($3.64 billion), up 6.7 percent year-over-year; operating profit of ¥18 billion ($120.51 million), up 11.9 percent year-over-year; and net income of 0 (zero).

The company also noted that it’s transferring its Inkjet Print-Head business to Riso Kagaku Corporation.

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