Toshiba: Strong yen CHEWED our tripled profit, spat out loss
And no one wants our LCD tellies
Despite a massive hike in operating profit, Toshiba's overall results for the quarter are at a loss as restructuring costs and the high rate of Japanese yen ate into the cash.
Toshiba's cost-cutting and rejigging helped operating profits to jump by 178 per cent to ¥11.47bn (£93.32m) from ¥4.1bn (£33.36m) in the same quarter last year. But that same restructuring helped eat into those operating profits, with the company spending ¥6.7bn (£54.5m) on structural reform.
The exchange rate from the high yen did even more damage to the Japanese firm, taking a ¥10.2bn (£83m) bite out of its profits.
Toshiba's sales slipped slightly from last year, down 4.3 per cent from the same time last year to ¥1.3 trillion (£10.57bn). The firm said that while sales were higher in social infrastructure products, they were down in digital products, electronic devices and home appliances.
"Lower sales resulted from the significant decrease in demand for LCD TVs in Japan and decreased demand for PCs in the United States," the firm said in its presentation.
Toshiba has been doing all it can to combat the global downturn and the shift in profitable electronics to mobiles and smartphones. The company said last week that it would cut production of NAND memory by a third until demand went up, which it hopes will happen in the next quarter.
The firm kept its forecasts for the full fiscal year, saying it still expected to get a net profit of ¥135bn (£1.1m) on an operating profit of ¥300m (£2.44m) and sales of ¥6.4trn (£52bn). ®