# Toshiba returns to Q1 profit on demand for automotive chips Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-12 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Toshiba Swings Back to Profit, Eyes New CEO Amid Scandals Meta Description: Toshiba's recovery in Q1 with automotive chips sales & CEO search updates. Independent probe scandal details & strategic review promise for future URL: https://financedigest.com/toshiba-returns-to-q1-profit-on-demand-for-automotive-chipshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-12t053953z1lynxmpeh7b06ortroptp3toshiba-shareholders-board-1736838025042-compressed.jpg) By Makiko Yamazaki TOKYO (Reuters) -Toshiba Corp said on Thursday it swung back to profit in the first quarter, as sales of automotive chips and hard disk drives recover from a pandemic-driven slump in demand. The scandal-hit Japanese conglomerate also said it has been working on the selection of candidates for a permanent CEO and board chairman. Satoshi Tsunakawa, a veteran Toshiba executive who has taken on both positions in an interim capacity, told reporters he hopes an extraordinary [shareholders meeting to appoint a new board chairman will be held by the end of this year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row"). Toshiba [posted an operating profit](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop") of 14.5 billion yen ($132 million) for April-June, in line with estimates and reversing a year-earlier loss of 12.6 billion yen. It was its fourth consecutive quarter of [operating profit](https://www.financedigest.com/ikea-stores-owner-ingkas-annual-operating-profit-rises-9.html "IKEA stores owner Ingka’s annual operating profit rises 9%"). [Sales jumped](https://www.financedigest.com/uk-retail-sales-jump-unexpectedly-but-big-picture-bleak.html "UK retail sales jump unexpectedly, but big picture bleak") 21%. Its estimate of 170 billion yen in operating [profit for the full year](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year") was unchanged. An independent investigation in June concluded https://www.reuters.com/world/asia-pacific/independent-probe-says-toshiba-agm-last-year-was-not-fairly-managed-2021-06-10 Toshiba colluded with Japan’s [powerful trade](https://www.financedigest.com/belgium-supports-energy-price-caps-suspending-trading-in-eu-power-crunch.html "Belgium supports energy price caps, suspending trading in EU power crunch") ministry to block investors from gaining influence at last year’s general meeting – an explosive finding that resulted in the ouster of its board chairman. Toshiba’s previous CEO left in April over controversy about a $20 [billion buyout bid](https://www.financedigest.com/eu-opens-antitrust-probe-into-broadcoms-61-billion-vmware-bid.html "EU opens antitrust probe into Broadcom’s billion VMware bid") from CVC Capital Partners that the conglomerate dismissed, angering some shareholders. That in turn has prompted [Toshiba to promise a strategic](https://www.financedigest.com/toshiba-in-talks-with-four-investment-firms-for-strategic-ideas-sources.html "Toshiba in talks with four investment firms for strategic ideas -sources") review. Tsunakawa said Toshiba was [working on the review and reiterated it was open](https://www.financedigest.com/bank-of-barodas-new-digital-supply-chain-finance-solution-from-igtb-to-open-up-raft-of-working-capital-opportunities-for-clients-of-all-sizes.html "Bank of Baroda’s new digital Supply Chain Finance solution from iGTB to open up raft of working capital opportunities for clients of all sizes") to take-private bids although it has not received any other offers. Toshiba plans to announce a new midterm [business plan in October as it is still struggling to build new profit](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business") drivers after the sale of the prized memory chip unit and the bankruptcy of the U.S. nuclear [business – both of which occurred in the wake of accounting](https://www.financedigest.com/making-your-accountant-an-invaluable-asset-to-your-business.html "MAKING YOUR ACCOUNTANT AN INVALUABLE ASSET TO YOUR BUSINESS") scandals. ($1 = 110.3900 yen) (Reporting by Makiko Yamazaki; Editing by Edwina Gibbs) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---