2010 profits will double, forecasts Toshiba
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Toshiba has announced that it expects its 2010 profits to more than double on demand for semiconductors and added that it would ramp up capital spending on its chip operations.
The third largest chipmaker in the world said it plans to almost double its chip spending to 160billion yen ($1.8bn) this financial year. In addition, the company is also trying to cut costs and focus on business areas such as nuclear power and lithium-ion batteries to counter the impact of volatile chip prices.
Fumio Muraoka, Toshiba's senior executive vice president, believes there are signs that the outlook has turned brighter, but remained cautious. He noted: "Based on what we did in the last financial year, we feel we have created a footing for growth once again."
Toshiba expects an operating profit of 250bn yen for the year to March 2011. The company also said that annual sales would rise 9.7% to 7trillion yen and net earnings to return to the black at 70 billion yen.
Toshiba booked a quarterly operating profit of 104.3bn yen for January-March and an annual profit of 117.2bn yen. That compares with a quarterly loss of 74bn yen and an annual loss of 250.2bn yen a year earlier.
