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.

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

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?