Toshiba Corp. is preparing to cut its full-year profit forecast by at least half, hurt in part by higher expenses in its energy business, the Nikkei business daily reported, without saying where its information originated.
Operating profit in the year that ends in March may range from ¥20 billion to ¥30 billion ($180 million to $270 million) when the Tokyo-based company posts results Wednesday, far below the ¥60 billion it projected in November, Nikkei reported.
Increased costs in sectors like energy are dragging down earnings from core operations and the company will book additional reserves to help adjust to the situation, the report said. In November, Toshiba pulled back from nuclear projects in the U.K. and bailed from a five-year misadventure in trading of liquefied natural gas, paying a Chinese company $806 million to take its interest in a U.S. LNG export venture.
There's also been a drag on profit from its chips systems business, Nikkei reported, while adding that there are some bright spots in point-of-sale systems, railway systems and air conditioning operation.
Toshiba will maintain its medium-term plan targeting ¥400 billion in operating profit by the year ending March 2024, aided in part by its further push into the "internet of things," Nikkei reported.
Toshiba spokeswoman Midori Hara said a decision hasn't been made on a profit revision, and the company plans to release its earnings report on Feb. 13.