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Toshiba Projects Down Sales, Profits

Faced with lower demand for electronic components for digital devices, Toshiba has significantly revised downward its consolidated sales and profit expectations, compared with original forecasts.

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. This compares with a $449 million gain in the first half of fiscal 2000.

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.