Toshiba Posts Lower Q1 Sales, Net Loss - Twice

Toshiba Posts Lower Q1 Sales, Net Loss

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Tokyo - Toshiba reported lower sales and an overall net loss in its fiscal first quarter due to restructuring costs, its chip business and lower CE sales.

Company-wide sales for the quarter were $13.9 billion, down approximately $2.9 billion compared with the prior year's quarter.

The net loss was $602.1 million, which is about $487 million wider than the first-quarter loss of the prior year.

Toshiba said that while "signs of an upturn can be seen, mainly in Asia, including China," U.S. and European economies are still difficult and "the overall global economy is expected to remain weak for some time yet."

In Toshiba's digital products operation, where its CE products reside, sales were down 24 percent to $5.1 billion during the quarter compared with the prior year.

The group's operating profit was $50.6 million, about $88.6 million lower than the prior year's first quarter.

Toshiba said the group had "lower sales mainly in TVs and hard disk drives, due to lower demand and significant price erosion" due to the recession. PCs also had weak sales.

But the group generated an operating profit, but lower than the prior year's first quarter. PCs posted a lower operating profit, but the leader in profits for the group was optical disc drives.

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