Toshiba Corporation Wednesday announced its consolidated results for the first quarter (April-June) of fiscal year (FY) 2003 to March 2004.
Toshiba’s overall consolidated sales were 1,117.2 billion yen (U.S. $9,310 million), a decrease of 73.9 billion yen from the same period of the previous year. Of this decline, 60 percent, approximately 41.5 billion yen, was attributable to transfers of businesses from the parent company to joint ventures or other companies that are not consolidated in Toshiba’s results, the company said.
Operating income (loss) declined by 15 billion yen from a year earlier to -41.3 billion yen (-$344 million). Electronic Devices increased operating income by 13.1 billion yen against the year-earlier period, but operating income for Digital Products declined by 20 billion yen, largely as a result of significant sales price erosion. Social Infrastructure and Home Appliances also saw operating income (loss) decline.
In Electronic Devices, sales of NAND flash memory saw robust growth, though total segment sales declined slightly, due to the transfer of cathode-ray tube business to a joint venture, Toshiba said. Sales of Digital Products declined 34.9 billion yen against the same period a year ago, largely as a result of lower sales from personal computers in overseas markets, despite increased unit sales. Social Infrastructure saw sales decline by 36 billion yen from the year-earlier period, on sluggish sales for plant maintenance in Japan and declines in sales of power equipment in North America. The sector’s decrease also reflected the transfer of the power transmission and distribution business to a joint venture, the company said
Net sales were 155.9 billion yen, down 3 percent compared to the year-ago period. Operating income was –1.5 billion yen, a decrease of 4 percent from the year-ago period.
Toshiba said the decline in net sales and operating income was largely attributable to sluggish demand and price erosion in air-conditioners and refrigerators.
Domestic sales of personal computers were flat compared to the same period a year ago and decreased significantly overseas, largely as a result of severe price erosion that could not be offset by increased unit sales both in Japan and overseas.
Sales of television sets also declined, as prices of projection televisions substantially fell in North America and domestic sales declined. Overall sales of cellular phones increased slightly over the same period a year ago, as cellular phones with cameras saw growth in Japan that compensated for lower sales in North America.
Semiconductor sales increased 7 billion yen over the same period a year ago to 192.5 billion yen, on the strength of continued healthy demand for NAND flash memory and growing demand for multi-chip packages memories for cellular phones. Sales of LCDs increased 11.2 billion yen to 67.6 billion yen, thanks to growth in the area of Toshiba’s main product focus, small- to medium-size high resolution low temperature polysilicon LCDs.
Toshiba said the decline in net sales reflects the absence of the cathode-ray tube business, which has been transferred to a joint venture with Matsushita Electric Industrial Co., Ltd. In the same period last year, the CRT business contributed sales of 23.5 billion yen. Net sales from other businesses reported in the segment actually increased by approximately 15 billion yen against the same period a year ago. Segment operating income increased by 13.1 billion yen, as operating income from semiconductors climbed by 13.6 billion yen to 15.9 billion yen.
Sales of Industrial and Power Systems & Services decreased by 45.2 billion yen against the same period a year ago to 121.8 billion yen. Demand for upgrades and maintenance of power plants in Japan remained sluggish, and sales of thermal power plant in North America were lower. The net sales decline also reflects a 12 billion yen reduction resulting from the transfer of the power transmission and distribution business to TM T&D Corporation, a joint venture with Mitsubishi Electric Corporation.
e-Solutions decreased 1.4 billion yen in sales from the year-earlier period to 49.7 billion yen, due to lower sales to customers in banking, government and public infrastructure.
In Medical Systems, sales of multi-slice CT system and diagnostic X-ray equipment increased from the same period in previous year. Sales of elevators and escalators saw slight decrease.
Overall operating income (loss) for the segment as a whole decreased by 3.8 billion yen, on declines in Industrial and Power Systems & Services and e-Solutions and despite increases in Medical Systems and Elevators and Escalators.
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