Toshiba expects bigger loss, contract job cuts

Apr 17, 2009

(AP) -- Toshiba Corp., Japan's top chipmaker, Friday said its net loss for the last fiscal year will be bigger than forecast due to a large write-off, and warned that more contract jobs will be cut.

The company will cut 3,900 contract workers in Japan by March of next year, according to spokeswoman Hiroko Mochida. That is in addition to the 4,500 Japanese contract workers it previously said would be cut by last month.

Toshiba now estimates the net loss for the year to March 2009 at 350 billion yen ($3.5 billion), sharply up from 280 billion yen forecast earlier and its biggest loss ever. It would also mark Toshiba's first annual net loss in seven years.

The wider was due to a write-off of 85 billion yen in deferred tax assets.

But the electronics maker said its operating loss would be a smaller-than-expected 250 billion yen, thanks to the stabilization of prices of flash memory chips used for music players and digital cameras.

Hit by a plunge in demand amid the global economic slump, Toshiba said in January it would cut 4,500 contract workers and delay or cancel investments in new chip plants.

In March, picked a new president, Norio Sasaki, 59, who will take the helm in June following approval at a meeting of shareholders.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Alibaba surges in Wall Street debut (Update)

add to favorites email to friend print save as pdf

Related Stories

Japan's Sharp sees deeper net loss

Apr 08, 2009

Japanese electronics giant Sharp Corp. said that it had fallen deeper in the red than expected in the past year, suffering its first-ever loss due to the economic downturn.

Toshiba, Sharp mull 'solar power tie-up'

Mar 27, 2009

Japanese consumer electronics giants Toshiba and Sharp are in talks on a possible tie-up in the solar power generation field, the companies said Friday.

Japanese firms in talks on microchip merger

Apr 16, 2009

Renesas Technology Corp. and NEC Electronics Corp. are in merger talks to create Japan's top chipmaker as they seek to survive the global recession, reports said Thursday.

Hitachi to replace president, split off businesses

Mar 16, 2009

Japanese hi-tech giant Hitachi Ltd. said Monday that it was replacing its president and splitting off its automotive systems and consumer electronics operations as it braces for a massive loss.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0