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Troubled Japanese conglomerate Toshiba said on Wednesday it would swing into the black for the full fiscal year as it completes the multi-billion-dollar sale of its chip business to restore its balance sheet.
The Tokyo-based firm said it now expects a net profit of 520 billion yen ($4.9 billion) for the year to March, reversing a net loss of 966 billion yen a year earlier.
Toshiba - Loss - Line - Estimate - Drop
Toshiba, which had earlier expected a full-year loss, upgraded its bottom line estimate as it factored in a drop in tax expenses associated with the sale of the prized chip business to a consortium led by Bain Capital.
The upward revision was also helped by the sale of US nuclear energy firm Westinghouse, which had long pressured Toshiba's earnings because of its massive losses.
Factors - Revision - Year - Issuance - Shares
Among other factors behind the revision was last year's issuance of 2.28 billion new shares to raise a total of 600 billion yen, a move aimed at avoiding a humiliating delisting from the Tokyo bourse.
"These outcomes have sufficiently addressed the material events and conditions that raised substantial doubts about the company's ability to continue," Toshiba said in a statement.
Firm - Forecast - Months - December - Profit
The firm made its forecast as it announced that in the nine months to December it saw a net profit of 27 billion yen, reversing a 532.5 billion yen loss for the same period last year.
Toshiba has been on the ropes after the disastrous acquisition of Westinghouse, which racked up billions...
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