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Toshiba Reports Lower Income

4/25/2008 09:29:00 AM Eastern

Osaka, Japan — Toshiba reported a double-digit drop in operating income but an increase in net sales for its fiscal year, ended March 31.

In a year where the company exited the HD DVD format, net sales were $76.7 billion for the year, an increase of 8 percent, while operating income was down 20.3 percent to $2.38 billion for the year. Income before taxes was down $429 million, to $2.56 billion, due primarily to the costs incurred in its withdrawal of the HD DVD business, Toshiba said.

Its digital products segment sales were up 5 percent to $2.95 billion, while operating income was down 0.8 percent to $15 million. Toshiba reported higher sales in PCs worldwide, as well as higher sales in TV, while sales in mobile phones were flat. The digital media business recorded what the company called, “a significantly lower performance,” reflecting the HD DVD situation.

During its fiscal fourth quarter net sales were $20.9 billion, down $614.0 million, with operating income of $1.14 billion, down $238.0 million, and net income of $12.5 million, down $249.0 million.

In digital products sales were down 3 percent for the quarter, to $7.22 billion, compared with the same time in the previous year, with operating income up $24 million, to $84 million. Toshiba reported increased TV and PC sales but was again impacted by its exit from the HD DVD format.

The company is projecting a 5 percent gain in digital products sales for fiscal year 2008 and a 55 percent increase in operating income.

Toshiba indicated that all dollar figures it issued for this report are valued at 100 yen to the dollar for fiscal year 2007.