Japanese electronics maker Toshiba Corp. said it aimed to increase sales by 13 percent in the 3 years to March 2008 and boost its operating margin by more than 1.3 percentage points, exceeding market expectations. Unveiling its mid-term business plan, Atsutoshi Nishida, president, said Toshiba aimed to achieve the targets by focusing on advanced flat panel TVs, next-generation DVDs, and other growth areas, adding the estimates were conservative.
"Toshiba publishes mid-term business plans every year. We have not achieved those goals since 2000/01 (ended in March 2001) and disappointed people in the market every time we missed them," Nishida said. "This time around, we've come up with numbers we can commit ourselves to hitting. Our internal goals are much higher than these."
Toshiba said it was targeting sales of 6.6 trillion yen (approx. U.S. $58.9 billion) and an operating profit margin of 4 percent or more in the 2007/2008-business year.
"Launches of our strategic products like SED TVs and HD DVD are soon coming up. We intend to nurture these products into our core businesses in order to secure growth," Nishida said. Toshiba backs a new DVD technology called HD-DVD, while Sony Corp. supports rival format Blu-ray. Nishida said his company plans to launch HD DVD players by the end of the year and HD DVD recorders early next year.
In flat panels, Toshiba and Canon Inc. plan to invest a total 200 billion yen (approx. $1.8 billion) in a joint venture to make the SED panels, which consume less energy than liquid crystal displays and plasma panels. Mass production is slated to start in January 2007. (Reuters)
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