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Toshiba April-December profit sags 29%

Japan's Toshiba said Thursday its net profit dropped 29.1 per cent in the April-December term because of higher taxes, although healthy sales saw its operating profit rise.

TOKYO: Japan's Toshiba said Thursday its net profit dropped 29.1 per cent in the April-December term because of higher taxes, although healthy sales saw its operating profit rise.

The engineering giant, maker of everything from memory chips to nuclear reactors, said its nine-month net profit shrank to 38.68 billion yen (US$377 million) due mainly to increased income taxes.

But operating profit soared 56.1 per cent from a year ago to 153.35 billion yen, while sales jumped 13.5 per cent to 4.59 trillion yen.

All of Toshiba's major business segments logged increased sales and operating profit, most notably electronics devices and components, the company said.

"The memories business saw significantly higher sales on increased sales volume," Toshiba said in a statement.

The company's infrastructure business turned less profitable as demand for thermal power plants in Japan began to taper off, almost three years after the nuclear disaster at Fukushima prompted the shuttering of atomic reactors.

The profitability of nuclear systems sold in foreign markets also dropped, Toshiba added.

For the fiscal year ending in March the firm maintained its forecast of 100 billion yen in net profit, operating profit of 290 billion yen and sales of 6.3 trillion yen.

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