TOKYO: Japan’s Toshiba Corp on Friday reported a 75% slump in second-quarter operating profit and lowered its full-year earnings outlook after logging an appraisal loss for its printing business. It posted an operating profit of 7.54 billion yen ($53.2 million) for the July-September quarter.

The result compared with a consensus estimate of 36.9 billion yen from four analysts polled by Refinitiv. Toshiba, which is exploring options for a buyout, cut its profit forecast for the year ending March to 125 billion yen from 170 billion yen.

The earnings outlook for Toshiba could have implications for would-be buyers of the conglomerate, given that, according to sources, Japanese banks are cautious about financing a buyout deal.

A consortium led by private equity fund Japan Industrial Partners (JIP) submitted a bid to buy Toshiba for around $15 billion that lacks key commitments from banks, the Nikkei newspaper said on Monday, raising questions about whether the offer can succeed.

Buyout fund JIP submits $15bn Toshiba bid without bank backing: Nikkei

Another potential bidder, state-backed fund Japan Investment Corp (JIC), is also preparing a proposal, sources have said.

The fund has been in talks with US private equity fund Bain Capital and north Asia fund MBK Partners to form a separate consortium, sources have said. JIP and JIC have declined to comment.

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