Toshiba Profits Plummet 95 Percent

Toshiba is reporting a 95 percent loss in profits for Q1 2008, attributing the losses to the company's departure from the HD DVD business in February.

It lost 48 billion yen ($461 million) when it pulled out of the HD DVD industry, the company says.

Toshiba's profit stood at 1.25 billion yen ($12 million) at the end of Q1, as compared to 26.17 billion yen last year.

Shares in Toshiba are down 2 percent ($8.15) and quarterly revenue fell 3 percent to 2.09 trillion yen (US $20 billion).

Toshiba's net profit dropped 7 percent to 127.4 billion yen ($1.2 billion) and the company suffered a 60.2 billion yen ($580 million) operating loss.

For the current fiscal year, however, Toshiba forecasts a two percent increase in net profit to 130 billion yen ($1.25 billion).