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Toshiba Q2 CE Sales Up 17%

10/28/2002 01:58:00 PM Eastern

Tokyo - Toshiba reported strong sales of notebook computers, peripherals, TVs and other visual equipment during its fiscal second quarter, ended Sept. 30, leading to a 17 percent increase in sales in its Digital Media segment.

Digital Media, which includes consumer electronics products, recorded second quarter sales of $3.5 billion, up from $2.9 billion in the year-ago period. Second quarter operating income for Digital Media moved into the black during the second quarter, hitting $21.7 million, compared with a $30.1 million operating loss during the same three months last year.

For the six months, Digital Media segment sales increased 18 percent, reaching $6.5 billion, up from $5.5 billion in the same period in 2001. Operating income for the segment over the six-month period came in at $27.9 million, compared with an operating loss of $89.4 million year-on-year.

Sales to North America took a 24 percent jump in the second quarter, to $2 billion, up from $1.6 billion in the year-ago period. For the first half, sales to North America rose 20 percent, reaching $3.7 billion, up from $3.1 billion in the same six months in 2001.

A healthy demand for consumer audio-visual products, digital cameras and cellular phones, among others, helped Toshiba lift consolidated sales 7 percent in the second quarter, to $11.7 billion, up from $10.9 billion in the second quarter of 2001. However, the company still reported a net loss for the quarter, at $61.9 million, but much lower than the $725.5 million net loss reported in the same quarter last year.

Six-month consolidated sales increased 5 percent, hitting $21.4 billion, up from $20.3 billion in the same six months last year. Significant improvement in the Digital Media segment, among others, helped the company tone down its net loss from $996 million last year, to a loss of $214.7 million in the first six months of this year.

Looking ahead, Toshiba forecasts a 5 percent hike in consolidated sales for its fiscal year, up to $45.5 billion, compared with $43.4 billion in the previous fiscal year. The company expects to report operating income of $1 billion and net income of $186 million for the current year, compared with an operating loss of $922.1 million and net loss of $2.1 billion in the previous year.

Zeroing in on the Digital Media segment, net sales for the year are predicted at $13.4 billion, up from $11.9 billion year over year. Segment operating income is forecast at $169.9 million for the year, compared with an operating loss of $120.5 million in the year-ago 12 months.