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Toshiba Profits Plummet 95 Percent

Toshiba is attributing the losses to its departure from the HD DVD business in February, saying it cost them $461 million.


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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).




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About the Author

Steve Crowe, Web Editor
Steve is an editor for cepro.com. He graduated from Emerson College with a B.A. in Journalism. He joined the CE Pro staff in 2008. Steve is also a freelance sports writer for The Boston Globe and other various publications.

3 Comments (displayed in order by date/time)

Posted by Dave  on  04/25  at  03:33 PM

Sounds like HD-DVD wasn’t the “failure” it’s been made out to be… Toshiba was sure making some nice money with it.

I’ve also noticed that HD-DVDs are continuing to be released… who knows how long that will last though?

I continue, and will continue, to enjoy my Toshiba HD-DVD player and HD-DVDs, a PS3 had to join the fold for BD.

Posted by jlgelbm3  on  04/25  at  08:41 PM

I have not read the financial statement, but this large loss is likely due to one time charges taken in the period for the closure of the business unit. This would involve the scrap/sale/write-down of assets such as capital equipment, inventory, IP etc. related to the closed operation. There is likely a few other non-HD-DVD losses thrown in there too since companies will use an already large loss to flush other things off the books, (known as a “big bath” in accounting lingo). You will not see a loss anywhere near this large next quarter.

Posted by ryan  on  04/27  at  08:32 AM

The look and sound of bankruptcy, haha

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