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Toshiba Tec Returns to Profitability in Third Quarter

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Toshiba Tec of Japan today released financial results for its fiscal third quarter and nine-month period, with both ending on December 31, 2022.

The good news was that Toshiba Tec achieved both revenue and profit growth for its third quarter – after following two quarters of losses. Its MFP business also reported increases for both periods.

Third Quarter

Toshiba Tec’s third-quarter net sales were ¥130.6 billion ($995.65 million), up 14.62 percent year-over-year; operating profit was ¥5.8 billion ($44.217 million), up 25.86 percent year-over-year; and net profit was ¥4.4 billion ($33.54 million), up 13.64 percent year-over-year.

The company said third-quarter revenue and operating profit increased company-wide mainly due to improvement in the Workplace Solutions business, which includes MFPs, auto ID systems, inkjet print heads, and related products

Toshiba Tec’s Workplace Solutions business had third-quarter revenue of ¥58.6 billion ($446.75 million), up 20.12 percent year-over-year. Operating profit was ¥4.6 billion ($35.06 million), up 60.87 percent year-over-year.

Nine-Month Period

For the three quarters that ended on December 31, 2022, Toshiba Tec’s net sales were ¥374.74 billion ($2.85 billion), up 14.0 percent year-over-year, and operating profit of ¥11.80 billion ($89.96 million) up 36.2 percent year-over-year. However, Toshiba Tec reported a net loss of ¥2.0 billion ($15.24 million), versus net profit of ¥6.19 billion ($47.19 million) for the same period a year earlier.

Workplace Solutions group revenue was ¥158.8 billion ($1.21 billion), up 18 percent year-over-year, and operating profit was ¥5.7 billion ($43.45 million), up ¥5.2 billion year-over-year.

Toshiba said sales of MFPs increased due to the impact of foreign exchange rates, in addition to increased sales in the Americas, Europe, Asia, and other overseas regions as a result of the company changing its transportation method or routes, raising prices, and other efforts. This was despite the ongoing shortages in product supply caused by the tight supply-demand balance in international cargo transportation, while the effects of the shortage of components were mitigated.

Forecast

For its fiscal year that will end on March 31, 2023, Toshiba Tec is forecasting net sales of ¥510.billion ($3.88 billion), up 14.5 percent year-over-year; operating profit of ¥14 billion ($106.73 million), up 21 percent year-over-year; and a net loss of ¥2.5 billion ($19.04 million), versus net profit of ¥5.38 billion ($41.04 million) for the previous fiscal year. 

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