Economy

Toshiba considering $5.3 billion capital injection

Toshiba considering $5.3 billion capital injection”

Toshiba reported robust second-quarter results with a 76 percent jump in operating profit driven nearly entirely by a strong performance from its memory chip unit.

Over the full year, Toshiba said it was projecting sales of 4.97 trillion yen, as well as a record operating profit of 430 billion yen. However, the factor that had the greatest impact on the results was the split of the branch dealing with memory chips, the most profitable unit of the company. (TOSYY.PK, TOSBF.PK) has started considering a capital increase of almost 600 billion yen or about $5.30 billion, including investment from other companies, in an effort to brace for the delay in the sale of its memory chip unit, Japanese public broadcaster NHK reported. Its chips and devices division accounted for 97 per cent of that profit. It needs to beef up its balance sheet by the end of the fiscal year in end-March to avoid a possible delisting.

In a statement, Toshiba repeated its stance that it was aiming to close the deal to sell its chip business by the end of March, saying in response to the NHK report that nothing specific had been decided regarding any funding plans. Cutting it fine, if the deal does not close before then, Toshiba - hurt by liabilities at is now bankrupt nuclear unit Westinghouse - is likely to end a second consecutive year in negative net worth, putting pressure on the Tokyo Stock Exchange to strip it of its listing status.

The deal also faces legal challenges from estranged business partner Western Digital, which argues no deal can proceed without its consent.

Toshiba is considering raising some 600 billion yen ($5.29 billion) of fresh capital, sources said Friday.

Net sales for the quarter grew to 1.24 trillion yen or $10.996 billion from 1.21 trillion yen in the previous year.

That does not reflect expected gains from the 2 trillion yen sale as the deal has yet to receive regulatory approval.

The global chip market boom has boosted demand for chip-producing equipment to the extent that equipment manufacturers are telling Toshiba to book orders early or will not be able to get the equipment in time, Hirata said.



Like this

loading...
loading...

Latest


10 November 2017
Cheers! Red wine cuts diabetes risk in women
Antioxidants help prevent or stop cell damage, and include vitamins C and E, lycophenes and flavonoids. The scientists believe this could be achieved by eating a wide variety of antioxidant-rich foods.

10 November 2017
Scott Kyle Parsons Acquires 2000 Shares of Alamos Gold Inc. (AGI) Stock
Zacks Investment Research raised shares of Alamos Gold from a "sell" rating to a "hold" rating in a report on Tuesday, August 8th. TheStreet downgraded Alamos Gold from a "hold" rating to a "sell" rating in a research report on Wednesday, August 31st.

10 November 2017
Teachers Advisors LLC Grows Stake in The KEYW Holding Corporation (NASDAQ:KEYW)
Geode Capital Management Limited Liability Corp invested in 0% or 376,258 shares. (NASDAQ:KEYW) for 465,534 shares. The company was maintained on Friday, July 7 by RBC Capital Markets. (NASDAQ:KEYW) rating on Tuesday, August 11.

10 November 2017
China's ByteDance buys Musical.ly teen app for Dollars 800 mln
Started by Zhang Yiming, it's on track to pull in about US$2.5 billion in revenue this year, largely from advertising. China's AI-powered content platform Bytedance Ltd said on Friday it would merge with lip-syncing app Musical.ly Inc.

10 November 2017
Resignation of Saad Hariri as Lebanon leader still a mystery
The missile, which was launched from Yemen, did not cause any major damage and was destroyed near Riyadh's King Khalid International Airport.

10 November 2017
Tiger Zinda Hai Stalls Hindi Remake Of Malayalam Film Take Off
It has been reported that Salman wanted the focus of the trailer to be on the action of the movie, rather than his on-screen romance with Katrina.

10 November 2017
Paris Jackson Issues "Sincerest Apologies" Over 'Insensitive' Instagram Story
The American star said that although she makes mistakes, she hopes to eventually become someone who can inspire others. The phrase gained pop culture recognition when Meryl Streep portrayed Lindy in the 1988 film Evil Angels .

10 November 2017
Schwartz Investment Counsel Inc. Boosts Stake in Fastenal Company
UBS AG upgraded Fastenal from an "outperform" rating to a "strong-buy" rating in a research note on Thursday, July 13th. Wilkins Investment Counsel Inc bought 21,100 shares as the company's stock declined 14.06% while stock markets rallied.

10 November 2017
US Judge Issues Gag Order in Criminal Case Against Manafort, Gates
The accuses go before their contribution of Trump's presidential crusade. "The cynic in me would say that was exactly what was happening", said Geragos, "that there was an audience of one".

10 November 2017
First Real Photos Of The Samsung W2018 Android Flip Phone Appears Online
The back of the SM-W2018 looks to be made of glass as fingerprint smudges are clearly visible on the surface. The phone will only be available in certain markets.