Toshiba＇s Profit Reduces Resulted from Quake

Published:2011/5/10 6:05:00 Author:Amy From:SeekIC

Japan’s Toshiba Corp. Monday (March 9) said in the report that the profit of the first quarter of 2011 was lower than annual basis. It is mainly because many chip fabs were shut down forcedly by the reason of earthquake and tsunami off the coast of Japan in March 11.

According to Toshiba (Tokyo), the sales of the fiscal fourth quarter is 1.73 trillion yen (about $21.5 billion) which is 102 percent drop when compared to the fourth quarter of fiscal 2009. The net income of Toshiba is 98 billion yen (about $1.2 billion) in the quarter with 11 percent decrease from the fourth quarter of fiscal 2009. The decline of profit is affected by the damage of many chip firms caused by earth quake in March.

Because of this disaster, many chip firms got serious damage. The subsequent aftershocks also caused power outages which aggravated the situation of chip fabs. Toshiba had to suspend manufacturing at least two chip fabs. The most seriously damaged Toshiba fab is a microcontroller fab in Kitakami, Iwate prefecture, which idled in whole March and did not recover production until April 18, according to Toshiba.

As regard to fiscal 2010, which by the end of March 31, the sales is 6.4 trillion yen (about $80 billion) with 107 percent increase when compared to fiscal 2009, said Toshiba. And the company posted a net income for the year of 137.8 billion yen ($17.1 billion), up 158 percent from fiscal 2009.

According to Toshiba, the fiscal 2010 shows that the sale of visual products including TVs and chip memory is much higher in spite of yen appreciation and the impact of the earthquake.

Toshiba’s semiconductor sales in the fourth quarter are 292.2 billion yen ($3.64 billion), which reduce slightly from 294.1 billion yen in the year-ago quarter. For the fiscal year, Toshiba reported chip sales of 1.14 trillion yen (about $14 billion), up about 6 percent from fiscal 2009.

For fiscal 2011, which by the end of March 2012, Toshiba said it expects sales to grow to about 7 trillion yen, up 9 percent from fiscal 2010. The company said it expects it net income to improve to 140 billion yen in fiscal 2011. The company also expects its operating income to improve to 300 billion yen, up about 25 percent from fiscal 2010’s operating income of 240 billion yen.

Toshiba’s fiscal 2011 is expected to grow to 1.27 trillion yen ($15.8 billion) with up 11 percent from fiscal 2010. The related integrated circuit is MJF122.

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