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Toshiba Revises Downward Sales, Profit Forecast

8/27/2001 01:48:00 PM Eastern

For the first half of 2001, April 1 through September 30, Toshiba said revised consolidated sales would hit $22.8 billion, compared with the $23.8 billion announced in its original forecast of April 27. In the first half of fiscal 2000, Toshiba reported sales of $23.5 billion.

The company now expects a consolidated net loss of $917 million for the fiscal first half, down from a $42 million net profit originally forecast four months ago. The compares with a $449 million gain in the first half of fiscal 2000.

Dogged by the dramatic economic slowdown that began in the United States at the end of 2000 - which now has become a global phenomenon that has undermined worldwide demand for semiconductors and other electronic devices - Toshiba has revised its fiscal year net sales down to $47.9 billion. This compares with last April's original forecast of $53.7 billion. The fiscal year runs April 1 through March 31, 2002. In fiscal 2000, Toshiba reported $49.6 billion in sales.

Net income for the fiscal year has been revised to reflect a loss of $958 million, compared with a gain of $500 million in the original forecast four months ago. In the previous fiscal year, the company reported net income of $801.7 million.

Toshiba also anticipates a $1 billion restructuring charge on a consolidated basis this fiscal year. It will spend $500 million this fiscal year on early retirement and other personnel programs to shrink its workforce.