Menu
Toshiba reports Q3 loss, revises down outlook

Toshiba reports Q3 loss, revises down outlook

Company expected to record its first loss in seven years.

Toshiba expects to record its first loss in seven years this year as a result of the global economic problems and the strong yen, it said Thursday.

The company had been expecting a modest profit, but lowered its outlook for its fiscal year ending March 31 as it announced results for the last three months of 2008.

During the period the company recorded a net loss of ¥121 billion (US$1.3 billion) on 21 percent lower sales of ¥1.5 trillion. In the same period of 2007 Toshiba made a profit of ¥80 billion.

It blamed the bad global economy and strengthening Japanese yen for the poor results.

Sales of digital products fell 27 percent and those of electronic devices and components dropped 31 percent. Both business units lost money during the quarter, with losses in the device segment by far the worse of the two. Plunging sales of memory chips and steep declines in chip prices pushed the division to a loss of ¥134 billion -- more than five times the loss recorded by the digital products group.

In reaction, Toshiba is delaying construction of a new memory chip plant in Yokkaichi in central Japan until 2010, and postponing construction of a second plant until market conditions show signs of improvement. The change in plans, along with other cutbacks, will see capital expenditure in 2009 of less than ¥100 billion, which is about 60 percent lower than that of the current financial year.

Toshiba also plans to cut research and development spending by 20 percent to ¥320 billion in the coming year, it said.

It will also pursue job cuts and encourage work-sharing schemes. Initially the cuts will hit around 4,500 part-time workers in its semiconductor and LCD (liquid crystal display) businesses.

For the full year Toshiba said it expects losses to climb to ¥280 billion and for sales to be ¥6.7 trillion. It had been predicting a profit of ¥70 billion on sales of ¥7.7 trillion.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags toshiba

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments