ID :
59707
Sat, 05/09/2009 - 04:13
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https://oananews.org//node/59707
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Toshiba sees record net loss in FY 2008, to stay in red in FY 2009+
TOKYO, May 8 Kyodo - Japanese electronics giant Toshiba Corp. said Friday it went into the red for the first time in seven years in the 2008 business year that ended March 31, recording its biggest-ever group net loss of 343.56 billion yen, due to plummeting flash memory prices and faltering consumption amid the worsening global economic downturn.
Toshiba also forecast that its group will remain in the red in the current
fiscal year with a net loss amounting to about 50 billion yen, while securing
an operating profit of 100 billion yen on expected sales of 6.8 trillion yen.
The fiscal 2008 net loss compares with the previous year's profit of 127.41
billion yen.
The group also posted an operating loss of 250.19 billion yen for the
just-ended year against the prior year's profit of 246.39 billion yen, on sales
of 6.65 trillion yen, down 13.2 percent from the previous year.
Toshiba, a maker of the NAND flash memory used in cellphones and digital music
players, is one of many semiconductor makers struggling to ride out a severe
slump in the global chip industry caused by the fall in flash memory prices and
sluggish consumption due to the global economic crisis.
Toshiba Corporate Executive Vice President Fumio Muraoka said at a news
conference in Tokyo, ''The chief cause of our poor earnings results for fiscal
2008 was the deterioration in the semiconductor business market.''
The operating loss for semiconductor business alone in fiscal 2008 was 279.9
billion yen, a turnaround from the previous year's profit of 89.0 billion yen
profit.
Muraoka said prices of NAND flash memories plunged 70 percent in the reporting
business year compared with the previous year.
Toshiba's capital-to-asset ratio stood at 8.2 percent as of March 31, down from
17.2 percent a year earlier.
To boost its financial base, Toshiba announced it will increase its capital by
about 500 billion yen mainly through public stock and subordinated bond
offerings.
''A capital increase is necessary for our future growth,'' Muraoka said, adding
it is insufficient to secure profits simply by cost-cutting and structural
reform measures.
In April, Toshiba signed a 30 billion yen deal with Fujitsu Ltd. calling for
Fujitsu to fully hand over its hard disk drive business to Toshiba via a
two-stage stock deal to be completed by the end of next year.
Earlier, Toshiba was said to be in talks with NEC Corp. on merging their
struggling semiconductor operations in a bid to boost their profitability. But
in late April NEC announced it will integrate its chip operations with Renesas
Technology Corp., leading Toshiba to seek other options to survive the ongoing
industry realignment.
==Kyodo
2009-05-08 23:17:58
Toshiba also forecast that its group will remain in the red in the current
fiscal year with a net loss amounting to about 50 billion yen, while securing
an operating profit of 100 billion yen on expected sales of 6.8 trillion yen.
The fiscal 2008 net loss compares with the previous year's profit of 127.41
billion yen.
The group also posted an operating loss of 250.19 billion yen for the
just-ended year against the prior year's profit of 246.39 billion yen, on sales
of 6.65 trillion yen, down 13.2 percent from the previous year.
Toshiba, a maker of the NAND flash memory used in cellphones and digital music
players, is one of many semiconductor makers struggling to ride out a severe
slump in the global chip industry caused by the fall in flash memory prices and
sluggish consumption due to the global economic crisis.
Toshiba Corporate Executive Vice President Fumio Muraoka said at a news
conference in Tokyo, ''The chief cause of our poor earnings results for fiscal
2008 was the deterioration in the semiconductor business market.''
The operating loss for semiconductor business alone in fiscal 2008 was 279.9
billion yen, a turnaround from the previous year's profit of 89.0 billion yen
profit.
Muraoka said prices of NAND flash memories plunged 70 percent in the reporting
business year compared with the previous year.
Toshiba's capital-to-asset ratio stood at 8.2 percent as of March 31, down from
17.2 percent a year earlier.
To boost its financial base, Toshiba announced it will increase its capital by
about 500 billion yen mainly through public stock and subordinated bond
offerings.
''A capital increase is necessary for our future growth,'' Muraoka said, adding
it is insufficient to secure profits simply by cost-cutting and structural
reform measures.
In April, Toshiba signed a 30 billion yen deal with Fujitsu Ltd. calling for
Fujitsu to fully hand over its hard disk drive business to Toshiba via a
two-stage stock deal to be completed by the end of next year.
Earlier, Toshiba was said to be in talks with NEC Corp. on merging their
struggling semiconductor operations in a bid to boost their profitability. But
in late April NEC announced it will integrate its chip operations with Renesas
Technology Corp., leading Toshiba to seek other options to survive the ongoing
industry realignment.
==Kyodo
2009-05-08 23:17:58
