Toshiba posts surprise loss on chip shortage, materials costs

Toshiba Corp posted an unexpected operating loss in the first quarter on Wednesday, as it grappled with a global chip shortage and a rise in costs for raw materials.

The loss of 4.8 billion yen US $35.6 million is the first quarterly loss in two years, compared to the 14.5 billion yen a year ago and a consensus estimate of 19.4 billion yen profit from four analysts polled by Refinitiv.

The company said that a chip shortage had a negative impact on 3 billion yen, while higher material and logistics costs pushed down its operating earnings by 9.4 billion yen.

Bain Capital, CVC Capital Partners and Brookfield Asset Management as well as a consortium involving Japan Investment Corp and private equity firm Japan Industrial Partners have been selected by Toshiba to proceed to a second bid round.

Sources told Reuters that a buyout of Toshiba could be the firm's value could be as much as $22 billion.

Tensions between Toshiba and its activist investors culminated last year when a shareholder-commissioned investigation concluded management had colluded with Japan's trade ministry, which sees the company's nuclear and defence technology as a strategic asset to block overseas investors from getting influence at its 2020 shareholder meeting.

This year, shareholders rejected management-backed plans to split the company, prompting Toshiba to restart a strategic review.