Toshiba slashes losses, eyes a return to profits this year

The company saw improvements in business in the second half of the year

Toshiba managed to recover from deep losses of two years ago and moved close to break-even in the year to March, it said Friday. The company reported smaller losses or better profits at all of its key business units despite an across-the-board drop in sales.

Net loss for the period from April 2009 to March 2010 was ¥19.7 billion (US$212 million), which is a significant improvement on the ¥343.6 billion loss it reported the year earlier. Net sales came in at ¥6.4 trillion, down 4 percent on the year.

The better results are due in part to a round of cost cutting and cost-reduction measures that Toshiba imposed as the financial year began in April 2009. Business was also helped by slightly better economic conditions in the second half of the year, the company said.

The biggest improvement was seen in Toshiba's electronic devices business, where operating losses were cut by more than 92 percent to ¥24 billion. Memory chips enjoyed higher sales and profits during the year but the LCD business recorded a weak performance. The unit includes Toshiba's component business and saw a slight drop in overall sales of 1 percent.

In the digital media business, sales were helped by strong demand for flat-panel TVs in Japan and the acquisition of Fujitsu's hard-drive disk business. But overall sales fell by 4 percent, partly due to price competition in the laptop PC market and a drop in demand for cell phones. Despite the sales drop the business returned to profitability and reporting operating income of ¥13 billion.

The biggest contributor to profits was Toshiba's social infrastructure division, which includes its nuclear power business. Orders for new nuclear power plants and maintenance and service contracts helped push up social infrastructure sales while profits were helped by the higher sales.

For the current year, Toshiba expects a net profit of ¥70 billion on net sales of ¥7 trillion. It expects sales to rise across the board and for profitability to return to the electronic devices business on the back of a healthier market for semiconductors and LCD screens. Toshiba also expects to see higher profits in the digital media sector thanks to improvements in the performance of its PC business.

Join the PC World newsletter!

Error: Please check your email address.

Tags financial resultstoshiba

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?