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Toshiba, Hitachi Report Strong Q1 CE Sales

7/31/2006 01:21:00 PM Eastern

Tokyo — Toshiba and Hitachi reported stronger CE sales for the first fiscal quarter due in large part to demand for TVs.

The Toshiba digital products business increased 20 percent to $5.42 billion during its fiscal first quarter, ended June 30. Toshiba’s digital products unit, which includes consumer electronics, had an operating income gain of 1.3 percent to $16.7 million.

Sales of digital products rose from the same period a year ago based on increased sales of PCs and TVs. Operating income of digital products increased from last year’s first quarter due to strong performances by mobile phones, storage devices and TVs, the company said.

In overall consolidated results, Toshiba’s net income improved from the same period last year to $35.1 million while sales improved to $12.6 billion.

Hitachi reported its first fiscal-quarter revenues in its digital media and consumer products segment were up 25 percent to $3.23 billion, while the loss for the segment was almost double the year-ago period at $140 million.

Strong sales growth in plasma and other flat-panel TVs drove the business, and the effect of the creation of Hitachi Appliances which merged several operations together, the company said.

Sales in North America for Hitachi were up 24 percent to $2.39 billion. Consolidated revenues for Toshiba during the quarter were $19.5 billion, up 10 percent from the previous year’s first quarter. Hitachi’s net loss was $192 million for the quarter, slightly lower than last year’s first quarter.