If you're an investor in Toshiba or you follow the next-gen DVD battle, this one is going to likely make you utter a curse word under your breath:
Japanese electronics maker Toshiba Corp posted a 95 per cent drop in quarterly profit on tumbling chip prices and an exit from next-generation DVDs, and its outlook was half that of market expectations.
This Reuters report follows the aftermath of what was a very bloody battle between HD DVD and Blu-ray
Toshiba, which also makes nuclear reactors and refrigerators, said it expects a net profit of 130-billion yen this year, half the mean market expectation of 264-billion yen by 17 analysts polled by Reuters.
Meanwhile, competitors are leaning into their forward momentum: Samsung posted a 37 per cent rise in quarterly profits on flat screen TV sales.
“Growth will be slow in our usual earnings drivers. What will count next year is cost cuts in our home electronics business and our exit from HD DVDs,” Toshiba Corporate Executive Vice President Fumio Muraoka told reporters.
Despite strong laptop sales, Toshiba's earnings were further depleted by a 108.5-billion yen loss in its next-generation DVD business, after its HD DVD format lost out to Sony Corp's Blu-ray technology. It was also hurt by slow sales of its panels for use in mobile phones.
If you're eager to learn more about the financial outlook of the company or see how the numbers were crunched check out
the full report.
Email this blog
