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Toshiba Q3 CE Segment Sales Off 2%

1/30/2004 09:34:00 AM Eastern

Tokyo — Toshiba’s fiscal third quarter sales in the digital products segment dropped 2 percent, due to lower sales of personal computers, cellular phones in overseas markets and projection televisions in the United States.

Digital products segment sales, which include consumer electronics, hit $5 billion for the three months, ended Dec. 31, down from $5.2 billion in the year-ago period.

The digital products segment at Toshiba moved into the red in the company’s third quarter, recording an operating loss of $72.8 million, compared with operating income of $83.1 million in the same quarter in 2002. Toshiba blamed severe price erosion and changes in product mix for PCs, as well as lower overseas sales of cellphones.

For the nine months, Toshiba’s CE segment sales slipped 3 percent, to $13.9 billion, from $14.6 billion, while the segment moved into the red, posting an operating loss of $335.9 million for the period, compared with operating income of $171.7 million for the same time frame in 2002.

Overall sales to North America decreased 11 percent in the third quarter, down to $1.8 billion, from $2 billion in the year-ago three months.

For the nine months, sales to North America fell 20 percent, to $5 billion, from $6.3 billion.

Consolidated third quarter Toshiba sales edged upward 1 percent, hitting $12.38 billion, from $12.36 billion, while operating income climbed to $131.2 million, from $22.9 million.

The company widened its net red zone in the third quarter, posting a net loss of $86.4 million, compared with a net loss of $65.1 million in the same quarter in 2002.

For the nine months, Toshiba recorded flat consolidated sales of $36.8 billion, with operating income of $19 million for the period, down from $50 million year on year.

The company widened its net loss for the nine months, to $387.1 million, from a net loss of $314.2 million year over year.