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Toshiba NZ's profit up, revenue down as company sells off PC and medical businesses

01 Aug 17

Toshiba’s New Zealand business has produced an improved profit for the latest financial year, despite a slight decrease in sales revenue for the period.

The company, which now focuses on electronic imaging devices, has recorded total comprehensive income for the year ending 31 March 2017 of $2.0 million, up from $804,197 a year earlier.

Sales revenue for the 2016 financial year sat at $12.3 million, a slight decrease on the $12.8 million recorded a year earlier. The financials show a reduction in sales of goods, which accounted for $7.4 million in revenue (down from $8.1 million), but an increase in services revneue, which climbed from $4.7 million to $4.9 million.

However, other revenue and income bolstered the company’s coffers to the tune of $2.2 million – up signifincantly on the previous year’s $13,575.

That income included $1.8 million from the sale of its PC and medical businesses, and $466,406 from net foreign exchange gains.

The financial year saw the resturcutre of Toshiba’s medical business in June 2016, followed by the November 1 restructure of the PC business, both of which were reported as ‘discontinued operations’.

Sales of goods from the discontinued operations sat at $12.2 million while services revenue for the discontinued operations was $1.1 million.

The company gained $729,854 profit after tax from its discontinued operation, further bolstering its overall profit for the year.

Across the wider Toshiba Australia business – of which New Zealand is a part – the company logged profits of $22.3 million – a massive turnaround from last year’s loss of $23.1 million, on slightly decreased revenue of $140.1 million, down from $140.2 million.

On the revenue side, $16.4 million came from the sale of its PC business, with $23.7 million in revenue coming from the medical business sale.

Profit from discontinued operations of $695,000, again a massive jump from last year’s loss of $26.5 million.

Globally, Toshiba – which has business across multiple arenas including electronic devices, information technology and infrastructure and energy – has suffered ailing fortunes in recent times, with the overall company expecting a net loss of JPY950 billion for the last financial year.

The company has repeatedly delayed its global full-year financial report, with the latest postponement prompting the Tokyo Stock Exchange to automatically drop the company to the second rung of the exchange.

In March its US nuclear unit, Westingouse, went into Chapter 11 bankruptcy – a move which protects the business from its creditors as it restructures.

In February, Toshiba chairman Shigenori Shiga resigned.

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