Toshiba Raises Profit Outlook

Toshiba raised its forecast for first-half operating profit by 36 percent to 95 billion yen ($906 million), crediting growth in memory chips and hard disk drives, as well as cost-cutting measures, according to Bloomberg. Revenue was also revised slightly higher, to 2.58 trillion yen from 2.55 trillion yen, the Japanese company said in a statement.

Analysts were projecting, on average, operating profit of about 62 billion yen on sales of 2.57 billion yen, according to estimates compiled by Bloomberg. Toshiba’s shares erased an earlier decline, and were up as much as 1.4 percent in Tokyo. This is the second earnings forecast upgrade since August, when Toshiba reported its first operating profit in six quarters.

The maker of everything from computers to nuclear power equipment previously increased its outlook in late September. The manufacturer is cutting thousands of jobs, shedding operations and narrowing the scope of its businesses to recover from an accounting scandal that upended the Tokyo-based company and its management. Toshiba also boosted its first-half forecast for net income, to 115 billion yen from the previous prediction for 85 billion yen.