Toshiba Corp (TYO: 6502) have given shareholders relief in their most recent trading update by producing strong profit figures and pledges to buy subsidiary businesses.

Despite the impressive update, shares of Toshiba slipped 0.26% during Wednesday business to JPY3,770. 13/11/19 13:41BST.

The Japanese tech giant posted its highest quarterly profit in two years, and also explained plans to buy out three listed subsidiaries.

Toshiba have had a tough time in financial 2019, as the firm was hit by accounting scandals and a management crisis.

Toshiba’s energy and infrastructure divisions drove the profit increase, as the company cut costs and reined in low-margin projects.

Ever since Toshiba went bankrupt in its US based nuclear power business, there has been a policy of recovery. This was evident with the sale of its prized memory chip division.

“We’ve changed everything, from marketing, procurement to the ways we take orders and produce products,” Toshiba CEO Nobuaki Kurumatani told Reuters.

Kurumanti alluded to plans in turning the tech conglomerate into a leaner company, adding “We are now compiling detailed strategies to boost the operating profit margin to 6% in three years (from 1% in the last fiscal year),”

Toshiba boasted operating profit figures of 44.23 billion yen for the second quarter ending in September.

This figure was the highest recorded, which was a rise of 6.25 billion yen just one year a go, and was the highest since the same period in 2017.

This figure also beat analyst and market figures of 25.97 billion yen as estimated by Refinitiv.

Toshiba maintained its profit forecast for the year ending March at 140 billion yen, versus 35.4 billion yen a year earlier, in line with the target the company set in its five-year plan.

Additionally, Toshiba have pledged to buy out subsidiaries such as Toshiba Plant Systems & Services (TYO: 1983), marine electrical systems maker Nishishiba Electric (TYO: 6591) and chip-making equipment maker NuFlare Technology (TYO: 6256) to turn them into wholly owned subsidiaries.

The buyouts, which will cost a total of 200 billion yen ($1.83 billion), as shareholders have pushed for action to take control of Toshiba’s portfolio.

Its five-year plan aims for 8-10% operating profit margin for the year ending in March 2024 by focusing on energy, social infrastructure and service businesses.