Business / Corporate

Toshiba net profit up 26% in fiscal 2018 after selling chip unit

Kyodo

Toshiba Corp. said Monday its group net profit in the year ended March rose 26 percent to a record ¥1.01 trillion after selling its prized chip unit in June.

The technology conglomerate’s bottom line was boosted by the ¥2 trillion ($18 billion) sale of Toshiba Memory Corp. to an international consortium including U.S. private equity firm Bain Capital LP, Apple Inc., Dell Inc. and South Korean chipmaker SK Hynix Inc.

Bain holds 49.9 percent of the voting rights in the chip company, while Toshiba has 40.2 percent of the rights and optical glass maker Hoya Corp. has 9.9 percent. Hynix and Apple also own stakes without voting rights.

Toshiba’s group operating profit fell 58.9 percent to ¥35.45 billion from the previous year on sales of ¥3.69 trillion, down 6.4 percent.

The company expects its group operating profit to jump 295 percent to ¥140 billion for the year through next March while its group sales will fall 7.9 percent to ¥3.4 trillion.