http://www.nni.nikkei.co.jp/AC/TNKS/...11D11JFA01.htm
Someone else is a losing a little too
Someone else is a losing a little too
Toshiba Likely To Post Op Profit Decline For Oct-Dec Quarter
12 December 2007 - Nikkei Report
TOKYO (Nikkei)-- Toshiba Corp is seen posting a lower October-December group operating profit than the 55.9 billion yen it booked in the year-ago period, due to plunging NAND-type flash memory chip prices and higher marketing costs for next-generation DVD recorders.
The company, however, appears to be on track to achieve its full-year operating profit target of 290 billion yen, up 12% from fiscal 2006, as first-half earnings and robust profits at other operations offset third-quarter sluggishness.
The October-December operating profit at the firm's semiconductor business is expected to surpass its year-earlier tally of 23.8 billion yen, but fall short of the 41.6 billion yen it reported in the July-September quarter. The market price for an 8-gigabit NAND-type flash memory chip is now languishing at about 4 dollars after hitting a year-to-date high of 9 dollars in August.
In addition, its operations for next-generation DVD recorders are in the red. Toshiba is spending huge sums to market its HD DVD recorders as Sony Corp. (6758) and Matsushita Electric Industrial Co. (6752) step up efforts to promote their Blu-ray machines.
Profit is also declining at its infrastructure-related business.
As a result, the company's overall operating profit for the quarter is expected to decline.
For the year ending March 2008, Toshiba's operating profit is seen reaching 120 billion yen at the infrastructure division, up 24%, and 150 billion yen at the chip business, up 17%. This is expected to make up for an anticipated loss of at least 40 billion yen at its HD DVD recorder business.