Toshiba closes on record loss, stock jumps


Toshiba's stock rose almost 4.9 percent as its predictions for this year outdid analyst expectations

TOKYO, Japan -- Japan's largest chip company, Toshiba Corp., on Thursday registered a record loss for the year just ended.

The Tokyo-based company posted a net loss of 254.02 billion ($1.96 billion) last business year, which finished March 31.

But its loss was outdone by peers NEC Corp. and particularly Fujitsu Corp., which lost almost $3 billion.

All the companies also gave their take on the year ahead. Fujitsu says it will break even for the year that began April 1.

Profit of $177 million ahead

Toshiba forecast a narrow net profit of 23 billion yen ($177.4 million) for this year.


Fujitsu expects only to break even this year and came in with a larger net loss than Toshiba

Toshiba said much of the loss stemmed from costs related to trimming its work force and cutting unprofitable business lines.

The chip industry views 2001 as the worst on record, as demand for electrical and electronic equipment plummeted.

Toshiba cited the driving force as "a slowdown in the U.S. economy, which triggered a global downturn in demand for IT equipment and systems," in a release on its Web site.

Toshiba also specializes in laptop computers and is second only to Intel Corp. in worldwide chip production.

Fujitsu ends with 383 billion yen loss

Fellow chip giant Fujitsu posted an even greater net loss of 382.5 billion ($2.95 billion) for this year. Fujitsu forecast a break-even result for this year.

NEC lost 312 billion ($2.4 billion). It anticipates a slim net profit of 10 billion yen ($77.1 million) this year.

It has been clear since their half-year profits that Japan's "Big Five" chipmakers would post large combined losses for last year.

While Fujitsu's figures were in line with earlier forecasts, Toshiba's figures were better than expected.

Analysts had expected Toshiba to forecast a profit of just 3 billion yen for this year, so the 23 billion yen was considerably improved.

Chip stocks higher

Toshiba shares leaped 4.9 percent as a result, to 603 yen. That was a strong gain on a day the tech-influenced Nikkei index fell 0.21 percent to 11,648.72.

The broader Topix broke even for Thursday, closing down 0.04 percent at 1098.32.

Despite its large loss, Fujitsu stock also gained, up 1.44 percent to 1,060 yen. Investors have been buying into the worldwide chip industry in 2002, as prospects for a rebound improve.

NEC closed up 0.77 percent to 1049 yen. Though NEC makes chips, it is perhaps better known for its computers and is also the largest mobile phone maker in Japan.