Toshiba revises financial outlook on quake, tsunami impact

Toshiba's sales slid after Japan's two natural disasters

Toshiba won't be able to meet its full-year revenue and profit forecasts due to the impact of the March 11 earthquake and tsunami in Japan, the company said Tuesday.

The company shaved ¥200 billion (US$2.4 billion) off its sales forecast, which now stands at ¥6.4 trillion for the year to the end of March, and ¥10 billion off its operating income forecast.

The revisions represent respective drops of 3 percent and 4 percent to the previous forecasts that were made on January 31. Then, the company also cut its sales forecast, citing factors including the strength of the Japanese yen and the merger of its mobile phone business with that of Fujitsu to form a joint venture.

There is some good news in the new forecast. Toshiba expects net profit for the year will be ¥135 billion, a jump of ¥35 billion on its January forecast, thanks to lower-than-expected non-operating expenses.

The earthquake and tsunami struck three weeks before the end of Japan's financial year. Toshiba is about halfway through calculating full-year financial results, which are due to be announced on May 9.

The pair of natural disasters left more than 27,000 people dead or missing and wrecked buildings and other infrastructure along hundreds of kilometers of Japan's eastern coast. A subsequent crisis at a nuclear power plant and electricity shortages left the nation in shock and led to many people staying at home and putting off big-ticket purchases such as the televisions and laptop PCs for which Toshiba is known.

The company also sustained damage to some of its factories and halted some production lines. Affected factories have restarted operations, but some won't be back to full capacity until the end of April.

Martyn Williams covers Japan and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultstoshiba

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?