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Toshiba said its half-year profit tripled, owing to cost cuts and the sale of its home appliances business, providing a boost to the firm as it tries to turn the page on an embarrassing accounting scandal.
The vast conglomerate posted an April-September net profit of JPY 115.3 billion ($1.08 billion), well up from JPY 37.3 billion seen a year ago.
It also logged a JPY 96.8 billion operating profit, reversing a year-earlier loss, although it blamed a stronger Japanese currency and lower sales of televisions and personal computers for a 4.3% decline in revenue to JPY 2.58 trillion.
Toshiba has been besieged by problems, most notably a profit-padding scandal in which bosses for years systematically pushed subordinates to cover up weak financial results.
In an intensive makeover effort, Toshiba has been shedding businesses and announced the sale of its medical devices unit to camera and office equipment maker Canon. Separately, China’s Midea Group has agreed to buy a little more than 80% of Toshiba’s money-losing home appliances arm.
Japanese firms doing business abroad have also been hit by a sharp rally in the yen, which makes them less competitive overseas and shrinks the value of repatriated profits.
Toshiba this week upgraded its sales and profit forecasts for the fiscal year ending March 2017, thanks largely to robust demand for memory chips and hard disc drives.