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Quake, fab shutdown reduce Toshiba's profits

Posted: 12 May 2011 ?? ?Print Version ?Bookmark and Share

Keywords:profits? fab shutdown? fiscal sales?

Toshiba Corp. recently announced that sales and income for the quarter ended March 31 dropped from year-ago levels. The electronics giant blamed the revenue decline on the shutdown of its semiconductor fabs after the devastating earthquake and tsunami that hit northeast Japan on March 11.

Toshiba (Tokyo) reported sales for the fiscal fourth quarter of about $21.5 billion (1.73 trillion yen), down 102 percent compared to the fourth quarter of fiscal 2009. The company reported a net income for the quarter of about $1.2 billion (98 billion yen), down 11 percent from the fourth quarter of fiscal 2009. Toshiba said the decreasing profit was related to the impairment of several chip fabs in the wake of the March 11 disaster.

Toshiba was forced to suspend manufacturing at two chip fabs because of damage incurred in the earthquake, and subsequent power outages and aftershocks. The most seriously damaged Toshiba facility, an MCU fab in Kitakami, Iwate prefecture, was idled through March and did not restart manufacturing operations until April 18.

For fiscal 2010, which also closed March 31, Toshiba reported sales of about $80 billion (6.4 trillion yen), up 107 percent from fiscal 2009. The company posted a net income for the year of 137.8 billion yen ($17.1 billion), up 158 percent from fiscal 2009.

Toshiba said its fiscal 2010 results reflected higher sales of visual products like TVs and higher memory chip sales despite the yen appreciation and the impact of the earthquake.

Toshiba's semiconductor sales in the fourth quarter were 292.2 billion yen ($3.64 billion), down 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 closes in 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 its net income to improve to 140 billion yen in fiscal 2011. It also hopes to raise its operating income to 300 billion yen, up about 25 percent from fiscal 2010's operating income of 240 billion yen.

Toshiba expects its chip sales in fiscal 2011 to grow to 1.27 trillion yen ($15.8 billion), up 11 percent from fiscal 2010.

- Dylan McGrath
??EE Times

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