Toshiba Expects A Loss of Nearly $1 billion 

Japanese electronics powerhouse Toshiba has reported that it expects to post a net loss of 110 billion yen ($970 million) this financial year following the sale of its memory chip business.

The loss will come instead of its previously forecast net profit of 230 billion yen due to taxes incurred during the sale of the chip business, although its revenue forecast remains unchanged.

Toshiba had last month announced that it would be selling its memory chip business for 2 trillion yen to a consortium led by Bain Capital that includes Seagate and is backed by the Japanese government.

As part of the sale, Toshiba said it would be investing 350.5 billion yen into the memory chip unit, maintaining some ownership over it.

The sale of Toshiba Memory, which is expected to be completed in March 2018, was an effort by the company to make up the losses it suffered after selling its nuclear power business to Westinghouse Electric.

Toshiba’s Westinghouse subsidiary had been forced to file for bankruptcy protection in March this year, resulting in a $6.3 billion write-down for Toshiba.

Toshiba posted a net loss of 965.7 billion yen for the financial year ending March 31, 2017, and after continually delaying its financial results announcement as a result of the troubles, it was demoted to the second rung of the Tokyo Stock Exchange.

Toshiba in April similarly announced that it is considering selling off its Moorside development company NuGeneration, while Toshiba president Satoshi Tsunakawa reportedly took a pay cut to help keep the company in business.