Toshiba outlook static despite huge profit growth
Toshiba Corp., a maker of flat-panel TVs, nuclear reactors and flash memory devices, said Tuesday its quarterly profit soared as the global recovery boosted sales, but it kept its forecast unchanged in a sign of caution about the strong yen and weak U.S. economy.
The net profit of $337.5 million for July-September was a big turnaround from the minuscule $1.2 million profit eked out a year earlier. Quarterly sales gained 3 percent to $20.15 billion.
Toshiba is the majority owner of Westinghouse Electric Co. in Cranberry.
Behind the rebound was the global recovery, especially booming demand in China and other emerging Asian economies, the company said.
Toshiba’s performance follows improved results from other Japanese electronics makers including Sony Corp. and Panasonic Corp.
But the Japanese all share the same big uncertainty over the plunging dollar, which erodes the value of their overseas earnings.
The dollar has slid by more than 10 percent against the yen over the past year and is trading between 80 yen and 81 yen.
Toshiba remained upbeat, saying that demand had jumped for home appliances, personal computers and memory for smartphones, including Apple’s iPhone.
Sales in the data storage business rose because of the acquisition of Japanese rival Fujitsu’s hard-disk drive business, according to Toshiba.
But the company stuck to its forecast from May, citing waning momentum in the global recovery and currency fluctuations as risks.