Japan's struggling Toshiba logs $436 mn loss in first half

The logo of Toshiba Corp is seen as window cleaners work on the company's headquarters in Tokyo, Japan, February 14, 2017. REUTERS/Toru Hanai TPX IMAGES OF THE DAY - RTSYJK2

Troubled Japanese conglomerate Toshiba said today it logged a net loss of $436 million for the fiscal first half, as it moves to complete a multi-billion-dollar sale of its chip business to restore its balance sheet.

The Tokyo-based firm said the loss was mainly due to the tax impact associated with the deal to sell the chip unit to a consortium led by Bain Capital.

The announcement came after the company said last month it was able to account for tax expenses associated with the chip unit sale, but not the massive proceeds from it.

The result of this is that Toshiba is projecting an annual net loss of 110 billion yen.

But the company has previously said the sale of the prized business should eventually boost the firm's before-tax consolidated income by about 1.08 trillion yen.

Toshiba is also projecting annual sales worth 4.97 trillion yen.