Toshiba, a multinational electronics company headquartered in Minato, Tokyo, disclosed on Tuesday a net loss of ¥52.14 billion ($344 million) for the six months ending in September. This setback was primarily attributed to losses related to its chip affiliate, Kioxia, marking the final earnings report before its planned delisting next month.
This figure contrasts sharply with the ¥100.66 billion net profit recorded by the Japanese conglomerate during the same period a year ago. Sales also experienced a decline of 6.1% to ¥1.50 trillion due to a slowdown in the hard disk business.
With the looming delisting from the Tokyo Stock Exchange on Dec. 20, Toshiba is contemplating the release of future earnings results.
The financial downturn stemmed from a roughly ¥100 billion loss associated with its 40% stake in Kioxia, which has been grappling with decreased demand for flash memory chips. Simultaneously, Kioxia itself reported a record net loss of ¥189.1 billion for the April-September period in a separate announcement on the same day.
Efforts by Toshiba to integrate operations with its U.S. counterpart, Western Digital, were halted last month after encountering challenges in gaining approval from SK Hynix, a significant investor in Kioxia, sources familiar with the matter disclosed.
Nonetheless, Toshiba maintained its earnings projection for the fiscal year ending in March, forecasting a marginal 0.5% decrease in operating profit to ¥110 billion with sales of ¥3.2 trillion, a 4.8% decrease from the previous year.
Following a ¥2 trillion takeover bid in September led by a consortium headed by Japan Industrial Partners, Toshiba is set to conclude its 74-year history as a public company, transitioning to rebuild itself as a private entity.
Toshiba has been navigating challenges stemming from various issues in the 2010s, including profit overstatements in financial filings and substantial losses in its U.S. nuclear business.
