Toshiba to spend big on chips, nuclear power

May 11, 2010 By TOMOKO A. HOSAKA , Associated Press Writer
In this Jan. 28, 2010 photo, a man checks a brochure of a Toshiba product at a discount electric appliances shop in Tokyo, Japan. Toshiba Corp. returned to profit in the January-March quarter, driven by growing global demand for the flash memory chips used in devices from cameras to music players. (AP Photo/Shizuo Kambayashi)

(AP) -- Toshiba Corp. unveiled an ambitious three-year agenda Tuesday, aiming to quadruple profits and spend $14 billion to amplify its strengths in semiconductors and nuclear power.

The Japanese conglomerate's business right now is vast, spanning and computers to health care equipment and industrial machines. But the world has changed since the global financial crisis, and so must Toshiba, said company President Norio Sasaki.

"We needed to figure out how to grow in this new paradigm," Sasaki said, referring to the rapid rise of emerging economies and the intensifying global battle for their business.

So Toshiba will shift its focus to several key areas, investing heavily in its strongest and most promising sectors to sharpen its competitive edge.

The Tokyo-based company plans to spend 1.3 trillion yen ($14 billion) on capital expenditures and investments through the fiscal year ending March 2013. Most of the money will go to its semiconductor-making unit and the Social Infrastructure division, which oversees operations.

The average spending over the three years would represent a 74 percent jump from capital spending levels last fiscal year, Toshiba said. It has allocated another 1.07 trillion yen ($11.6 billion) for research and development.

It aims to expand operating profit to 450 billion yen ($4.9 billion) by March 2013, up from 117 billion yen last fiscal year. It hopes that overseas growth will help drive up revenue 25 percent to 8 trillion yen.

Toshiba is world's second-biggest producer of NAND-flash memory, the chips used for storage on players, mobile phones and digital cameras. Demand for is expected to continue growing this year, along with sales of the gadgets that house them.

To keep up, Toshiba said in March that it will start building a new flash memory factory in Yokkaichi, central Japan this summer. It had hoped to expand capacity earlier but put those plans on hold when recession hit. The company expects to complete the new facility next spring.

The company, which owns Westinghouse Electric Co., is also bullish on nuclear energy. It expects to receive orders for 39 nuclear power plants worldwide by 2015 and is expanding fuel supply and maintenance services.

Toshiba is also looking to strengthen its foothold in green technologies. It has won bids to build three mega-solar power plants in Japan and expects to sign one overseas contract in Bulgaria soon. It has also received orders to outfit 10,000 homes with solar power systems.

Toshiba's announcement comes four days after it reported earnings, saying it returned to profit in the January-March quarter thanks to growing demand for memory chips.

The company booked a fourth quarter net profit of 48.6 billion yen ($531 million) on revenue of 1.85 trillion yen ($20.2 billion). Operating profit came to 104.3 billion yen.

During the same period last year, Toshiba posted a net loss of 184 billion yen and an operating loss of 74 billion yen.

For the full fiscal year through March 2011, expects to return completely to the black. It forecasts a net profit of 70 billion yen on 7 trillion yen in sales. It expects to sell 15 million TV sets and 25 million personal computers.

Explore further: Ticketfly buying WillCall for on-premise data

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Japan's Toshiba sees losses narrow

May 07, 2010

Japanese high-tech giant Toshiba Corp. announced Friday a sharply narrowed annual net loss based on strong demand for flash memory chips used in laptops, smartphones and other gadgets.

Japan's Toshiba still in red

Jul 29, 2009

Japanese high-tech giant Toshiba said Wednesday it had lost more than 600 million dollars in the fiscal first quarter as the economic downturn hit sales of televisions and other electronics.

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.

Toshiba eyes new businesses for recovery

Aug 05, 2009

Toshiba Corp. said Wednesday it aimed to expand its energy, healthcare and environment-related businesses as it targets a strong recovery in earnings within the next three years.

Recommended for you

Oregon sues Oracle over failed health care website

4 hours ago

Oregon Attorney General Ellen Rosenblum says she's filed a lawsuit against Oracle Corp. and several of its executives over the technology company's role in the state's troubled health insurance exchange.

Google buys product design firm Gecko

4 hours ago

Google on Friday confirmed that it bought Gecko Design to bolster its lab devoted to technology-advancing projects such as self-driving cars and Internet-linked Glass eyewear.

Ticketfly buying WillCall for on-premise data

Aug 21, 2014

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

User comments : 0