Toshiba's Net Profit Of $9 Billion 160 Million In 4-6 Months Is Due To The Sale Of Chip Business.

Japan's Toshiba Corp. reported record quarterly net profit in April-June after selling its flash chip business to a consortium led by American private equity firm Bain Capital for $18 billion earlier this year, foreign media reported.

But Toshiba did not say where the future growth would come from without its valuable flash chip business. The company's remaining major businesses, such as energy and social infrastructure, are trying to fill the gap left by the chip business. Last year, Toshiba chip business accounted for 90% of the company's total operating profit.

Toshiba posted a net profit of 102 trillion yen ($9.16 billion) in the April-June quarter, up from 53.33 billion yen a year earlier, as sales of its flash memory chip business, the world's second-largest NAND chip maker, recorded a gain of 966 billion yen.

Toshiba's net profit in the quarter was better than analysts' expectations. Earlier, four analysts surveyed by Thomson Reuters I/B/E/S expected Toshiba's net profit for the quarter to reach 57.29 billion yen on average.

Toshiba's profit forecast for the fiscal year ended March will remain at 1.07 trillion yen, down from 12 analysts'previous forecast of 1.11 trillion yen.

Toshiba has been in financial crisis for years as a result of billions of dollars in losses and accounting scandals at Westinghouse, its U.S. nuclear power business. Therefore, the sale of its chip sector will help to reverse the plight of Toshiba Co.
In accordance with the deal with Bain Capital consortium, Toshiba repurchased 40% of its chip business.

Toshiba has responded to calls from radical shareholders for greater returns by promising to use the proceeds from the sale of its chip business to repay shareholders. These shareholders participated in a $5.4 billion stock issue late last year, helping to prevent Toshiba from being delisted from the stock exchange.

Following that commitment, Toshiba announced a higher-than-expected $6.3 billion stock repurchase plan in June.
By the end of March, more than 70% of Toshiba's shareholders were overseas and were seen as being more outspoken than their Japanese counterparts in demanding management.