Toshiba Tec Reports Loss for Quarter, But MFP Sales and Profit Increase

Toshiba Tec of Japan today reported financial results for its first quarter that ended on June 30, 2022.

Net sales were ¥109.29 billion ($821.85 million), up 2 percent year-over-year; operating profit was ¥203 million ($1.52 million), down 94 percent year-over-year; and the company reported a loss of ¥2.16 billion ($16.24 million), compared to net profit  for the same quarter a year ago of ¥2.69 billion ($20.22 million).

Toshiba Tec said the loss was due to a loss of the value of derivatives due to exchange-rate fluctuations, and foreign withholding tax associated with an overseas subsidiary.

The company also said operating profit was down due to the prolonged impact of the pandemic, and soaring prices for components and international cargo transportation. Retail point-of-sale (POS) system revenue was down, but sales of office MFPs for the overseas markets increased,

Workplace Solutions Group

This business includes office MFPs, auto ID systems, and inkjet print heads.

Sales of MFPs increased in the Americas, Europe, and Asia, due to the company changing its transportation method, and focusing on its product supply, which included “aggressive design changing and adoption of alternative components.” MFP sales also benefited from foreign exchange rates. Sales of auto ID systems and inkjet print heads also increased.

As a result net sales were ¥46.77 billion ($351.71 million), up 8 percent year-over-year, and operating profit was ¥131 million ($985 thousand), versus a loss of ¥143 million ($1.07 million) for the first quarter a year ago.

Retail Solutions Group

Toshiba Tec’s other business group, the Retail Solutions Group, includes POS systems and auto ID systems for the Japan market.

Net sales for the group were ¥63.43 billion ($476.99 million), down 2 percent year-over-year, and operating profit was ¥72 million ($541 thousand), down 98 percent year-over-year.

Forecast

Toshiba Tec did not revise the forecast it announced in May. For its fiscal year that will end on March 31, 2023, it’s forecasting net sales of ¥450 billion ($3.38 billion), up 1 percent year-over-year; operating profit of ¥18 billion ($135.39 million), up 55.6 percent year-over-year; and net income of ¥8 billion ($60.17 million), up 48.7 percent year-over-year.

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