Toshiba Corp (6502) on Wednesday reported a surprise operating loss for its fiscal first quarter.
According to Masayoshi Hirata, Toshiba’s Chief Financial Officer, this first quarterly loss in 2 years was a result of rising prices of steel, copper and components sourced from suppliers.
“We have been able to only offset about half the impact of higher materials and logistics costs with price hikes,” the CFO said.
Toshiba reported a loss of JPY 4.8 billion during the April-June quarter, compared with a profit of JPY 14.5 billion in the year-ago period.
Meanwhile, a Refinitiv consensus estimate had pointed to a profit of JPY 19.4 billion.
Low margins for power-related projects also weighed on quarterly results.
Still, the Japanese conglomerate reiterated its annual earnings forecast, while expecting a 7% growth to JPY 170 billion.
The shares of Toshiba Corp closed lower for a second consecutive trading session in Tokyo on Wednesday. The stock went down 1.25% (JPY 66.0) to JPY 5,234.0, after touching an intraday low at JPY 5,218.0. The latter has been a price level not seen since April 21st (JPY 5,095.0).
The shares of Toshiba Corp have risen 10.66% so far this year, following another 63.95% gain in 2021.
That compares with a 2.95% year-to-date loss for the TOPIX Index (TOPX).
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