Toshiba Tec anticipates US$27.2M Q2 loss amid ETRIA restructuring

JAPAN – Toshiba Tec Corporation has announced it will record an extraordinary loss of approximately US$27.2 million in the second quarter of the fiscal year ending March 2026. 

According to the company, this stems from its commitment to cover a portion of employee compensation costs linked to layoffs at Toshiba Tec Information Systems (Shenzhen), now under ETRIA, the joint venture with Ricoh focused on multifunction printer production. 

The downsizing at the Shenzhen operations forms part of ETRIA’s plan to consolidate production sites in fiscal 2026, allowing Toshiba Tec to estimate and recognize the one-time expense.

In a statement, Toshiba Tec clarified that the loss remains limited to the current quarter and has no impact on later periods. 

It was already included in the full-year forecast released on August 6. The company added that any necessary updates to its projections would be disclosed immediately.

This financial pressure adds to challenges from the first quarter of fiscal 2025, where Toshiba Tec posted an operating loss of US$14.35 million, a reversal from the prior year’s US$28.97 million profit. 

Consolidated net sales for the period ending June 30 dropped 13% to US$822.14 million, driven mainly by reduced demand for point-of-sale systems and multifunction peripherals abroad.

Factors included U.S. tariffs, currency fluctuations, and geopolitical tensions.

Sales in the Workplace Solutions Business Group, covering multifunction printers and auto ID systems overseas, fell 14% to US$352.53 million. 

Operating profit in this area slid 97% to US$0.76 million, hit by lower volumes in the Americas and Europe, plus rising costs from tariffs and delayed price hikes. 

The prior year’s gains had come from elevated factory output to clear backlogs, which did not recur, alongside the July 2024 shift of manufacturing to ETRIA.

Despite the sluggish start, Toshiba Tec projects a full-year operating profit of US$81.36 million, accounting for a US$74.60 million tariff burden. 

Net sales are expected to decrease to US$3.73 billion from last year’s US$3.92 billion. 

The firm anticipates recovery in the second half, with deferred overseas retail sales kicking in and benefits from price adjustments and site optimizations in the Workplace Solutions segment.

In a related move, ETRIA signed an agreement to create a new wholly owned domestic production firm via an absorption-type split with subsidiary Yamanashi Electronics Co., Ltd., effective February 1, 2026. 

The entity will handle manufacturing and refurbishment of multifunction printers, printers, peripherals, and consumables at sites in Numazu, Gotemba, and Tohoku, employing about 1,000 people with US$2.78 million in capital. 

ETRIA stated the step supports domestic manufacturing and innovation in Japan’s printing sector.

Adding to ETRIA’s developments, Ricoh, Toshiba Tec, and Oki Electric Industry agreed in February 2025 to integrate OKI’s multifunction printer operations into the venture through a company split, set for October 1, 2025. 

This adjusts ownership to Ricoh at 80.74%, Toshiba Tec at 14.25%, and OKI at 5.01%. ETRIA’s President and CEO Katsunori Nakata noted the integration would combine expertise for more competitive products. 

Toshiba Tec’s President and CEO Hironobu Nishikori said it enables co-creation of solutions addressing social issues.

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