Toshiba Climbs as Profit Outlook Improves on Higher Memory Sales

(Bloomberg) -- Toshiba Corp. 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.

Revenue was also revised slightly higher, to 2.58 trillion yen from 2.55 trillion yen, the Japanese company said in a statement Monday. 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 rose as much as 1.2 percent in early trading in Tokyo on Tuesday, to their highest in two months. The stock is up more than 50 percent this year.

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.

To contact the reporter on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net. To contact the editors responsible for this story: Robert Fenner at rfenner@bloomberg.net, Reed Stevenson, Peter Elstrom