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| News Update | Reviews | Guides |
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Toshiba slashes outlook on chips and HD DVD pullout |
| 2008-03-19 |
Source:
Reuters.com |
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TOKYO (Reuters) - Japanese electronics maker Toshiba Corp (6502.T: Quote, Profile, Research) cut its annual pretax profit outlook by 29 percent on Wednesday, hit by falls in prices of NAND flash memory chips and the cost of pulling out of next-generation DVDs.
Toshiba last month decided to pull the plug on HD DVDs after the defection in January of Time Warner Inc's (TWX.N: Quote, Profile, Research) Warner Bros studio to the competing Blu-ray camp, ending a prolonged format battle with a group led by Sony Corp (6758.T: Quote, Profile, Research).
Toshiba now expects a pretax profit of 250 billion yen ($2.5 billion) for the year ending March 31, down from a previous outlook of 350 billion yen, after posting a 110 billion yen pretax loss in its HD DVD business.
The latest forecast falls short of a consensus of 315.5 billion yen in a poll of 15 analysts by Reuters Estimates.
Toshiba's bread-and-butter semiconductor operations, which earn almost half its profit, are likely to post an 85 billion yen operating profit, down from a previous forecast for a 150 billion yen profit, it said.
Behind South Korea's Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research), Toshiba is the world's second-largest maker of NAND flash memory chips, widely used in digital cameras, mobile phones and portable music players including Apple Inc's (AAPL.O: Quote, Profile, Research) iPod.
Prior to the announcement, shares in Toshiba closed up 3.3 percent at 690 yen, roughly in line with the Tokyo stock market's electrical machinery index.
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| Most Popular Product Reviews for Windows |
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 Most Popular Product Reviews for Mac |
| iSkysoft DVD Ripper for Mac |
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