According to Reuters Beijing time on May 15th, Toshiba Co said on Tuesday that the company's net profit in the fiscal year is expected to rise by 33%, due to the profit from the $18 billion store sale transaction. Toshiba today released its financial report for the 2017 fiscal year. Financial reports showed that Toshiba's 2017 revenue was 3 trillion and 947 billion 600 million yen (about $35 billion 974 million), down 2% from 4 trillion and 43 billion 700 million yen in the previous year, and net profit of 804 billion yen (about $7 billion 327 million), with a net loss of 965 billion 700 million yen in the previous year.
Toshiba said the company's net profit is likely to increase to 1 trillion and 70 billion yen (about $9 billion 750 million) in the 2018 fiscal year by March next year, up 33% from 804 billion in the last fiscal year, and has been profitable for second years after a few years in the financial crisis. The scandal of accounting fraud and the cost overrun of US electronics company Westinghouse led to Toshiba's financial crisis.
Toshiba agreed to sell the chip department last year to Bain Capital and the consortium led by South Korea's SK helix, but people familiar with the matter said that if the deal could not be approved by the Chinese regulators this month, Toshiba might abandon the sale and choose other options.
In a statement issued on Tuesday, Toshiba said the company still plans to sell the chip department and is expected to gain 970 billion yen (about $8 billion 840 million) from the deal. Toshiba said it would return the proceeds to shareholders after the transaction was completed.
According to people familiar with the matter, the deadline for China's regulatory authorities to complete the transaction review is May 28th. Toshiba hopes that China's regulatory authorities will be able to make decisions. If the transaction is not approved, Toshiba will withdraw from the transaction. After issuing $5 billion 400 million of new shares to foreign investors at the end of last year, Toshiba's demand for capital was less urgent. Some activist shareholders opposed the deal, saying it seriously underestimated the value of the Toshiba chip sector.
People familiar with the matter also worry that Sino US trade friction may affect the progress and outcome of the transaction approval process, but it is uncertain how big the impact will be. (compiling / Flute rain)