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Toshiba in turmoil

Toshiba cuts profit outlook as costs rise for energy business

Without chip operations, company faces hurdles in returning to earnings growth

Toshiba is struggling to get its energy business on track.

TOKYO -- Toshiba on Wednesday slashed its operating profit forecast for fiscal 2018 by 66% to 20 billion yen ($181 million), barely three months after forecasting 60 billion yen for the year.

The cut came as the group reported a 94% plunge in operating profit for the third quarter to 1 billion yen, on a 6% drop in revenue. Rising costs in its energy business and a 9.8 billion yen goodwill impairment to semiconductor equipment subsidiary NuFlare Technology -- stemming from a sharp decline in share price -- accounted for the drop in earnings and the revised forecast, the group said.

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