Subscribe free to our newsletters via your
. Space Industry and Business News .

Toshiba shares jump as it drops Japan TV operations
by Staff Writers
Tokyo (AFP) May 17, 2012

Toshiba shares surged almost six percent Thursday after saying it had stopped making televisions in Japan where a strong yen has hurt exports as slow demand and falling prices also ate into earnings.

The IT-and-engineering conglomerate later unveiled its mid-term business plan in which it forecast operating profit to more than double over the next three years on the back of emerging market growth.

Toshiba, the maker of Regza brand televisions, shuttered production lines at its last remaining domestic TV plant in Fukaya, near Tokyo, at the end of March.

It has already shifted most of its television production to factories in China, Indonesia, Egypt and Poland, citing a tumble in domestic demand for ending its Japanese production.

"The fall (in domestic demand) was beyond what we expected," Toshiba President Norio Sasaki told a news briefing Thursday in Tokyo.

"Over-supply has driven down prices. We did what we could to counter the trend, but it was beyond what we could do."

Sasaki, however, said the firm would not abandon the TV market, as some analysts have suggested for rival Sony, which is mired in massive losses.

The move is the latest development highlighting the plunging fortunes of Japan's once world-beating electronics firms.

A strong yen, intense global competition -- particularly from South Korean firms -- and falling retail prices of televisions have left Japanese manufacturers swimming in red ink for the past financial year.

The industry received a temporary boost from a now-ended government stimulus programme aimed at encouraging the purchase of energy-efficient appliances, but demand has slackened in an economy that has been limping along for years.

Domestic television demand also surged when the nation stopped analogue broadcasting last July, by which time nearly all households and corporations had bought new televisions capable of receiving digital broadcasts.

"After those events, domestic demand fell so we have reduced production accordingly", a Toshiba spokesman told AFP earlier Thursday.

In its earnings report last week Toshiba still booked a profit of about $918 million in its fiscal year ended in March, although that was nearly half its earnings in the previous 12 months.

The firm's shares surged 5.57 percent to 322 yen on Thursday.

Rival Hitachi has also said it will stop domestic production of television sets and shift its business focus to large-scale infrastructure projects.

Reports earlier this week said cash-bleeding Sony and Panasonic were looking to join forces to produce next-generation televisions in a bid to claw back market share from South Korean rivals.

Sharp, which is to get a cash injection from Taiwan's Hon Hai, whose Foxconn unit makes gadgets for Apple and Nokia, expects to remain in the red over the next year after a record $4.7 billion net loss up to March 2012.

Also Thursday, Toshiba said that by the fiscal year through March 2015, it was aiming to more than double operating profit to 450 billion yen ($5.6 billion) on sales of 7.8 trillion yen.

"We aim to realise a double-digit pace of sales growth in emerging markets," the company said in a release, adding that it would set aside about 700 billion yen over the next few years for possible tie-ups.

It also said it aimed to generate revenue of 1.0 trillion yen from its nuclear power business within about five years by capitalising on calls for stiffer safety measures after Japan's atomic crisis.

The firm already supplies equipment to help clean up the crippled Fukushima Daiichi complex, which was swamped by last year's quake-sparked tsunami, sending its reactors into meltdown.


Related Links
Space Technology News - Applications and Research

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

"Social Network" writer to pen Steve Jobs film script
San Francisco (AFP) May 16, 2012
Sony Pictures Entertainment on Wednesday said that the Academy Award winning screenwriter behind "The Social Network" will write the script for a film about Apple co-founder Steve Jobs. Aaron Sorkin will adapt the hot-selling biography by journalist Walter Isaacson for the motion picture screen, according to Sony. "Steve Jobs's story is unique: he was one of the most revolutionary and in ... read more

China grants more quotas for rare earth exports

Toshiba shares jump as it drops Japan TV operations

Record data transmission speed set

Samsung on top as mobile phone sales dip: survey

Second AEHF Military Communications Satellite Launched

Fourth Boeing-built WGS Satellite Accepted by USAF

Raytheon to Continue Supporting Coalition Forces' Information-Sharing Computer Network

Northrop Grumman Wins Contract for USAF Command and Control Modernization Program

NASA Langley's SCIFLI Team To Take Images Of SpaceX C2 Launch

Japan enters commercial space race

Ariane 5 mission with twin telecommunications satellites approved for launch

NASA says competition is key to private space race

Habits and hidden journeys of ocean giants

Floating robots use GPS-enabled smartphones to track water flow

Navigating the shopping center

Geolocating soccer players

Superjet crash blamed on clouds - official

Russia to buy 90 brand-new Su-35S fighters

Russian Air Force roundtable: status quo, revamps, perspectives

Citing safety, Pentagon chief limits flights of F-22 jets

Researchers map path to quantum electronic devices

Fast, low-power, all-optical switch

SK Hynix pulls out of bid for Japan's Elpida

Electric charge disorder: A key to biological order?

Moscow court upholds ban against satellite image distributor

New Carbon-Counting Instrument Leaves the Nest

China launches new remote-sensing satellite

ESA declares end of mission for Envisat

Nanotube 'sponge' has potential in oil spill cleanup

Plastic trash altering ocean habitats

Olympics: London faces up to 'greenest' Games pledge

1,500 children in Nigeria village suffer lead-poisoning

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement