According to Global Data, demand for automotive chips helped Toshiba recover from the Covid-19 pandemic in the first quarter of fiscal 2021.
The company reported a jump in net profit to $162.1 million for the first quarter ended 30 June 2021, compared to a net loss of $107 million in the fourth quarter of 2020.
Alisha Bajpai, analyst at GlobalData , explains, "The return to profitability, reflecting Toshiba's recovery from the COVID-19 pandemic, was facilitated by improved net sales. Year-on-year, net sales and operating profit increased, mainly due to improved performance in semiconductors and hard disk drives (HDDs). The semiconductor business grew more than 29% (led by automotive devices)."
The Japanese business accounted for 49% of net sales, followed by Other Asia (28%), North America (12%) and Europe (7%). On a regional basis, the European business recorded the highest growth of 60.6%, followed by Asia (47.1%), North America (43.1%), Japan (2.2%) and Other locations (52.8%).
"Although the company's results show recovery from the pandemic, management upheaval and the search for a new president and successor to interim president and CEO, Satoshi Tsunakawa, could be a challenge for the company in the short term," Bajpai concludes.
