Thursday January 29, 07:20 AM
Toshiba forecasts loss for year
TOKYO (AFP) - Japan's Toshiba Corp (Berlin: TSE1.BE - news) . said Thursday it expected to fall deep into the red for the year to March as the global economic slowdown hits demand for semiconductors and flat-screen televisions.
The electronics and engineering giant said it now expected a net loss of 280 billion yen (3.1 billion dollars) for the year, compared with a previous forecast of a net profit of 70 billion yen.
The company had booked 127.4 billion yen in net profit the previous year.
Toshiba said in a statement that the worldwide economic slowdown "caused rapid price erosion and demand declines in semiconductors and liquid-crystal display" televisions.
Toshiba forecast an operating loss for the year of 280 billion yen. In its last forecast in September, it had expected an operating profit of 150 billion yen.
The company cut its revenue forecast from 7.7 trillion yen to 6.7 trillion yen.
Besides the global slowdown, Toshiba said it was also hit by a sharply higher yen, which erodes export earnings, and changes in Japan's system of charging for mobile telephone handsets.
In the fiscal third quarter which ended in December, Toshiba saw substantial losses across nearly all sectors.
The company reported a net loss of 121.1 billion yen in the third quarter, compared with a net profit of 80.5 billion yen the year before.
The company was also in the red at the operating level in the third quarter, reporting a loss of 158.8 billion yen. Quarterly revenue slipped 20.8 percent to 1.49 trillion yen.
Toshiba, which owns US nuclear plant maker Westinghouse, saw its most stable performance in the social infrastructure division which includes power systems.
It was the only major business sector that posted an operating profit for the quarter, although revenue still slipped three percent from a year earlier.
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