Toshiba (OTC: TOSYY) reported an unexpected operational deficit in April-June due to a global chip shortage and rising raw material costs, according to Reuters.
The first quarterly loss in two years compared to a 14.5 billion yen profit a year earlier and a 19.4 billion yen consensus expectation from four analysts polled by Refinitiv.
Higher costs for materials and shipping and a lack of chips cut operating profits by 9.4 billion yen and 3 billion yen, respectively.
Even though it has been involved in a lot of scandals, the Japanese industrial group kept its earnings forecast for the year ending in March at 170 billion yen, which is a 7% increase from the previous year.
Toshiba has chosen to continue bidding with Bain Capital, CVC Capital Partners, Brookfield Asset Management, and a group made up of Japan Investment Corp. and Japan Industrial Partners.
Reuters sources said a Toshiba takeover might be worth $22 billion.
Tensions between Toshiba and its activist investors reached a high point last year when a shareholder-ordered investigation found that management worked with Japan’s commerce ministry to stop outside investors from getting power at Toshiba’s 2020 shareholder meeting.
This year, Toshiba’s shareholders voted down plans to split the business, so the company had to start over with a strategic review.
$1=134.98 yen
