Toshiba Australia back in black after shedding businesses

Toshiba Australia back in black after shedding businesses

Reports $22.3 million in post-tax profit after offloading its Medical and PC businesses

Toshiba Australia has gone from a net after-tax loss of $23.1 million in the financial year ending 2016 to $22.3 million post-tax profit for its full year ending 31 March, after shedding two business units.

The Australian operations of the embattled Japanese tech company reported its rise to profit, along with revenue and other financial numbers, in documents lodged with the Australian Securities and Investments Commission (ASIC).

The documents revealed that the company's revenues in Australia hit $140.1 million for the year, a dip from the $140.3 million it brought in during the same period last year. 

Specifically, revenue from the sale of goods was slightly down – from about $71 million to $70.7 million this financial year.

Revenue from services were also marginally down, from $62.5 million in the last financial year to $62.2 million this year.

Most of the company's other revenues and expenses remained similar to past years, with the exception of income tax expenses and profits from its business units.

During the period, the company restructured its operations, disposing its Medical business on 1 July 2016 and its PC business on 1 November 2016. 

The move caused its income to exceed $40 million, with $16.4 million arising from the sale of its PC business and $23.7 million from the sale of its medical business.

This was slightly offset by the increase in income taxes that the company had to pay – up from $1.06 million in 2016 to $5.57 million this year.

Meanwhile, the company's cash and cash equivalents dipped, from $4.1 million last year to $2.9 million this financial year, while its trade and other receivables assets decreased from $70.6 million to $31.3 million. Its inventories were also down from $37.8 million to $12.4 million.

Toshiba Australia’s parent company, Toshiba Corporation, has had a difficult year. 

In December 2016, it flagged a major impairment loss on the acquisition of a US nuclear power business by its subsidiary unit, Westinghouse Electric Company.

Toshiba subsequently moved to put its flash memory business stake up for sale earlier this year in a bid to cover massive losses incurred by the Westinghouse Electric Company.

Google, Amazon, Apple, Foxconn Technology Group and Kingston Technology were rumoured to be among the potential bidders for stock in the business, along with Western Digital - a stakeholder in the business - according to reports.

Toshiba has recently been making headlines over a subsequent legal stoush with Western Digital and the looming sale of its memory chip business, Toshiba Memory Corporation.

The local branch of the company offered no further insight into the ongoing sale process.

The global conglomerate also recently split off four in-house companies into wholly owned subsidiaries, aiming to further enhance collaboration between the split-off entities and maximising the value of each business with the move. 

As of 1 July, its industrial ICT solutions company was merged into Toshiba Solutions Corporation, responsible for construction work related to the ICT solutions business and holds construction business licenses. 

The merger also allowed for the establishment of a business structure that unified development, manufacturing and sales of ICT solutions that utilise IoT and AI, increased the scale of solutions business for manufacturing, industry, social infrastructure, distribution and finance, government and municipalities and supported further business growth. 

The new company aims to focus heavily on digital transformation by expanding business through its Spinex IOT architecture and providing services. Its storage and electronics devices solutions company was also recently transferred into its newly established Toshiba Memory Corporation, created on 1 April. 

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