Toshiba Reports Loss in Fiscal Half
Oct 24, 2003
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Japanese electronics maker Toshiba Corp. sank deeper into losses for the first half of the fiscal year compared to the same period a year ago, as sales tumbled in personal computers, TV sets, cell phones, and air-conditioners.

The Tokyo-based company posted a 32 billion yen (U.S. $292 million) loss in the April through September period -- an even bigger loss than the 26 billion yen a year ago. Fiscal-half sales totaled 2.6 trillion yen ($23.7 billion), down 1 percent from 2.64 trillion yen, the company reported.

About 90 billion yen ($822 million) of the sales drop came from the transfer of businesses from the parent company, such as TV cathode-ray tubes and power transmission, according to Toshiba. Without such transfers, sales would have increased, it said.

The results were slightly worse than Toshiba's outlook in September, when it projected a loss of 25 billion yen ($228 million) on 2.6 trillion yen ($23.7 billion) in sales.

Price falls battered Toshiba's personal computer sales, offsetting gains in the numbers of PCs sold both in Japan and overseas. Television and cell phones sales were also sluggish, although liquid crystal displays (LCDs) and computer chips fared better. Air-conditioner sales faltered in Japan because of an unusually cold summer, but the nuclear power plant business improved, the company said.

Toshiba said it expected recovery in the second half as the U.S. economy continues to rebound and companies in Japan begin to spend more. But global uncertainty remains about the continuing drop in electronic prices, it said.

Toshiba is forecasting a return to profitability for the fiscal year ending March 31, 2004. It expects a 25 billion yen ($228 million) profit, up 35 percent from 18.5 billion yen in fiscal 2002 on 5.6 trillion yen sales, unchanged from a year ago. (AP)

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