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Toshiba forecasts annual profit drop vs rise expected, limited virus impact - Metro US

Toshiba forecasts annual profit drop vs rise expected, limited virus impact

The logo of Toshiba Corp is seen behind cherry blossoms at the company's headquarters in Tokyo

TOKYO (Reuters) – Toshiba Corp forecast on Friday a 15.7% drop in annual operating profit compared with expectations of a small rise in profit, even as a recent portfolio overhaul helps the industrial conglomerate limit the impact of the coronavirus outbreak.

It forecast profit of 110 billion yen ($1 billion) for the year through March 2021, down from 130.46 billion yen a year earlier.

The outlook compared with the 136.71 billion yen average of 13 analyst estimates compiled by Refinitiv.

Since a crisis stemming from the bankruptcy of the U.S. nuclear power business in 2017, Toshiba has conducted a series of restructuring steps, including the sale of its laptop and television set businesses.

It is now focusing on social infrastructure businesses that are resilient to a global economic slump driven by the coronavirus outbreak.

Strong orders for infrastructure projects and cost cuts will help partly offset a 90 billion yen impact from the outbreak, the company said in an earnings presentation document.

($1=109.2000 yen)

(Reporting by Makiko Yamazaki; Editing by Muralikumar Anantharaman)

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