Toshiba profit down 34pc, eyes Alstom unit

May 09, 2014 - 5:06:16 am
A customer checks Toshiba’s notebook computers at an electric shop in Tokyo yesterday.

TOKYO: Toshiba said yesterday its full-year net profit fell about 34 percent with one-off costs weighing on its bottom line as the Japanese firm reportedly eyes French giant Alstom’s power-grid business.

The fall in Toshiba’s net earnings to 50.83bn yen ($500m) in the fiscal year to March was chiefly due to the cost of exiting an optical disc drive business jointly run with South Korea’s Samsung. That was about half Toshiba’s earlier net profit forecast. However, operating profit jumped 47 percent to 290.76bn yen while sales came in at 6.50 trillion yen, up 13.5 percent from a year earlier, the technology and engineering conglomerate said.

Toshiba is involved in a range of businesses from power generation and transmission systems and medical equipment to computer chips and laptops. For the year to March next year, Toshiba said it expected a net profit of 120bn yen on sales of 6.7 trillion yen. Earlier, Japan’s leading Nikkei business daily said Toshiba will offer to buy Alstom’s power-grid business from General Electric, if the US firm completes a $17bn bid for a chunk of the French conglomerate. Alstom, which builds power stations and electricity generating equipment as well as the French TGV high-speed train, is mulling a bid from GE for its energy unit and a rival offer by German group Siemens. AFP