Toshiba Corp is preparing to cut its full-year profit forecast by at least half, hurt in part by higher expenses in its energy business, Nikkei Asian Review reported, without saying where its information originated.<\/p>\n
Operating profit in the year that ends in March may range from 20 billion yen to 30 billion yen ($180 million to $270 million) when the Tokyo-based company posts results Wednesday, far below the 60 billion yen it projected in November, Nikkei reported.<\/p>\n
Increased costs in sectors like energy are dragging down earnings from core operations and the company will book additional reserves to help adjust to the situation, the report said.<\/p>\n
In November, Toshiba pulled back from nuclear projects in the UK and bailed from a five-year misadventure in trading of liquefied natural gas, paying a Chinese company $806 million to take its interest in a US LNG export venture.<\/p>\n
There\u2019s also been a drag on profit from its chips systems business, Nikkei reported, while adding that there are some bright spots in point-of-sale systems, railway systems and air conditioning operation.<\/p>\n
Toshiba will maintain its medium-term plan targeting 400 billion yen in operating profit by the year ending March 2024, aided in part by its further push into the so-called internet of things, Nikkei reported.<\/p>\n
Toshiba spokeswoman Midori Hara said a decision hasn\u2019t been made on a profit revision, and the company plans to release its earnings report on Feb. 13.<\/p>\n