Toshiba shares slide on lower profit report
Toshiba shares slid Wednesday after a report said the Japanese technology and engineering conglomerate likely fell short of its operating profit forecast for the last fiscal year.business Updated: May 08, 2013 10:13 IST
Toshiba shares slid Wednesday after a report said the Japanese technology and engineering conglomerate likely fell short of its operating profit forecast for the last fiscal year.
The firm's stock lost 4.26 percent to 516 yen by the morning break in Tokyo as the leading Nikkei business daily said Toshiba's earnings would come in flat from the previous year at about 200 billion yen ($2.02 billion), missing its earlier projection for the year to March by about 60 billion yen.
Sales in the period likely declined five percent to 5.8 trillion yen, the Nikkei said, without citing sources.
Toshiba is to report its full-year earnings later Wednesday.
"That is not what we have announced," a Toshiba spokesman told AFP in reference to the Nikkei report.
A sharply weaker yen has helped many Japanese firms as they report full-year earnings, making them more competitive overseas and boosting the value of repatriated foreign income, which inflates their bottom line.
But the unit's value has had a mixed impact on Toshiba, the Nikkei said.
Profit margins in its memory chip unit improved while the yen's depreciation hurt Toshiba's flat-panel television and personal computer businesses because it imports many dollar-denominated parts to make those goods, it said.
Electronics manufacturers worldwide are struggling to profit from making televisions as they face fierce competition in the overcrowded, low-margin market.
Toshiba's key infrastructure business also suffered as Japan's nuclear power plants remained offline as anti-atomic sentiment runs high following the Fukushima disaster two years ago.
Japanese companies involved in atomic power have been increasingly looking overseas as demand has dried up at home following the worst nuclear accident in a generation.