Toshiba Corp. reported a group net profit of 1.6 billion yen (approx. U.S. $15 million) for the quarter ending Dec. 31, 2004 compared to a 9.2-billion yen (approx. $89 million) loss in 2003.
The company said sales increased 3 percent to 1.37 trillion yen (approx. $13 billion) for the quarter from 1.32 trillion yen (approx. $12.7 billion) in the same quarter of 2003. Home appliance sales increased 4 percent for the quarter, while sales of digital products and electronic devices increased 12 percent and 2 percent, respectively.
Despite the increase in profit, the Japanese-based electronics and appliance maker reduced its profit forecast for the fiscal year ending March 31, 2005 to 45 billion yen (approx. $435 million), down from its earlier forecast of 50 billion yen (approx. $483 million).
Toshiba said its profits were squeezed by tough price competition for digital goods and home electrical appliances, including washing machines and DVD recorders. Toshiba also said its computer chips section, which makes and sells products such as flash memory chips for digital cameras and mobile phones, slumped because of price drops.
Additionally, Toshiba lowered its group sales outlook to 5.86 trillion yen (approx. $56.6 billion) for the year from 5.87 trillion yen (approx. $56.7 billion).
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