• Kyodo

  • SHARE

Toshiba Corp. reported Wednesday a net loss of ¥11.35 billion ($106 million) in the April-June period due to sluggish performance in its storage device segment hit by coronavirus-trigged disruptions.

The industrial conglomerate logged an operating loss of ¥12.64 billion and sales slumped 26.2 percent to ¥599.82 billion in the first quarter of fiscal 2020.

Toshiba posted a smaller net loss than the ¥140.23 billion reported in the same period last year but the coronavirus pandemic became a drag despite its years of restructuring.

“We cut fixed costs but saw a negative impact of ¥49.3 billion from the coronavirus (on an operating basis),” Masaharu Kamo, corporate senior vice president, said during an online press briefing.

As the coronavirus spread globally, many countries imposed lockdown measures, disrupting supply chains.

Toshiba suffered delays in installing semiconductor-making equipment in China, while operations at its main hard disk drive factory in the Philippines were also affected. Demand for semiconductors for autos and copy machines also fell.

In Japan, the company cut the number of business days in the first quarter, during which a state of emergency was imposed between April and May, weighing on its earnings.

Toshiba saw the number of factories in full operation drop to 30 percent in April but it recovered to 96 percent in July.

Toshiba retained its full-year forecasts for an operating profit of ¥110 billion, down 15.7 percent from the previous year, on sales of ¥3.18 trillion, down 6.2 percent.

It has not disclosed its net earnings outlook.

Toshiba has been undergoing restructuring to become a leaner firm with its focus on businesses that can produce stable profits, selling its TV and laptop units. It has exited from its U.S. nuclear power and liquefied natural gas businesses.

RELATED PHOTOS

Your news needs your support

Since the early stages of the COVID-19 crisis, The Japan Times has been providing free access to crucial news on the impact of the novel coronavirus as well as practical information about how to cope with the pandemic. Please consider subscribing today so we can continue offering you up-to-date, in-depth news about Japan.

Coronavirus banner