Toshiba cuts profit forecast on lower chip prices

Toshiba Corp. lowered its profit forecast lower Friday, blaming the plunge in semiconductor prices and weaker-than-expected demand, slipping into the red for the fiscal first half for the first time in five years.

The Japanese electronics maker said it now expects a 50 billion yen ($469 million) loss in the six months ending Sept. 30, down from a 45.7 billion yen profit the same period a year earlier.

In April, Toshiba had expected a 15 billion yen ($141 million) profit for the fiscal first half.

Toshiba said its semiconductor business was hurt by a price fall in flash memory used in digital gadgets. Weak demand, partly as a result of the recent global slowdown, also hurt performance, it said.

The company is projecting a 70 billion yen ($656 million) profit for the fiscal year ending March 31, 2009. That's about half the 127.4 billion yen profit Toshiba recorded the previous year.

Toshiba had earlier expected to post a 130 billion yen ($1.2 billion) profit for the fiscal year.

The company also lowered its fiscal year sales forecast to 7.7 trillion yen ($72.2 billion) from an earlier 8 trillion yen ($74.98 billion). Toshiba recorded about the same level of sales as the latest forecast in the fiscal year ended March 2008.

Back To Top