Toshiba said that net profit for the year to the end of March 2013 may be over 80% up on the previous year at $1.7bn after a 47% drop in net profits to $921m for the year to the end of March 2012. The company expects an operating profit of over $3.75bn and sales of $80bn in the 2013 financial year.
The figures are in marked contrast to Japanese rivals Matsushita and Sony which have reported disastrous losses for the financial year ending in March 2012.
Apple kept Toshiba profitable with about two thirds of its sales of NAND flash going to Apple. ‘Memories recorded a solid performance on increased unit sales,’ says Toshiba, adding that, in the current year, it will ‘develop next generation NAND flash memories ahead of competitors; expand its share in CMOS sensors for digital cameras by achieving low power consumption, high image quality sensor technology; and aim to strengthen profitability in discretes by securing high growth in the power device market.’
Toshiba expects a 14% increase in NAND flash sales to $20bn during the year to the end of March 2013.
Macro-economically, Toshiba reckons: ‘While the emerging economies, including China and India, continued to expand and the United States saw gradual recovery, the global economy remained in severe circumstances due to financial uncertainties in some European countries, fiscal austerity and concerns about the financial system. Although the global economy is expected to continue to recover gradually, anxieties remain about the rise in crude oil prices and high levels of unemployment in the United States and some European countries, and sovereign risk in some European countries.’
The Japanese economy is in a ‘severe condition’ due to the earthquake, high oil price, yen appreciation and European debt situation.
LCD TVs were selling unprofitably. Toshiba has adopted a ‘Toshiba Inside’ strategy selling parts rather than the end products.