OREANDA-NEWS. August 3, 2011. Toshiba Corporation announced its consolidated results for the first quarter (April-June) of fiscal year (FY) 2011, ending March 31, 2012. All comparisons in the following are based on the same period a year earlier, unless otherwise stated.

Overview

(billion yen)

 

 

Change from

 

1Q of FY2011

1Q of FY2010

Net sales

1,326.1

-125.3

Operating income (loss)

4.1

-29.7

Income (Loss) from continuing

3.1

-6.9

operations, before income taxes

 

 

and noncontrolling interests

 

 

Net income (loss) attributable

0.5

0.0

to shareholders of the Company [1]

 

 

[1] "The Company" refers to Toshiba Corporation.

The Japanese economy remained in severe circumstances due to the effects of the March 11, 2011 Great East Japan Earthquake. Overseas, the Asian economies, most notably China and India, continued their expansion, but there are still concerns for recession triggered by continuing high unemployment in the United States and the financial position of some European countries, and the pace of worldwide economic recovery has eased.

In these circumstances, Toshiba Group is contributing to Japan's recovery through its business activities and aiming to be a global leader by accelerating global business development. Consolidated net sales were 1,326.1 billion yen (USD 16,371.7 million), a decrease of 125.3 billion yen, mainly reflecting yen appreciation and the impact of the earthquake. Consolidated operating income was 4.1 billion yen (USD 50.9 million), a decrease of 29.7 billion yen, reflecting the impact of the earthquake and yen appreciation.

Income (Loss) from continuing operations before income taxes and noncontrolling interests decreased by 6.9 billion yen to 3.1 billion yen (USD 38.8 million). The Company minimized the impact of the earthquake, and net income attributable to shareholders of the Company was 0.5 billion yen, unchanged from the same period of the previous year.

Consolidated Results for the First Quarter FY2011 by Segment

(billion yen)

 

Net Sales

Operating Income (Loss)

 

 

Change*

 

Change*

Digital Products

522.0

-60.2

-10%

0.0

-10.6

Electronic Devices

268.4

-63.6

-19%

4.3

-22.7

Social Infrastructure

426.9

-12.0

-3%

-3.2

-0.7

Home Appliances

149.5

+11.0

+8%

1.1

+2.3

Others

77.6

-3.8

-5%

1.0

+1.3

Eliminations

-118.3

-

-

0.9

-

Total

1,326.1

-125.3

-9%

4.1

-29.7

(* Change from the year-earlier period) Digital Products: Lower Sales and Lower Operating Income

The Digital Products segment saw overall sales decrease, reflecting yen appreciation, sluggish sales in the Visual Products business and in the PC business in Europe and the United States, and weak sales in the Storage Products business, primarily optical disc drives.

Segment operating income decreased, mainly on lower sales in the Visual Product business and the Storage Product business, although the PC business recorded higher operating income on a healthy performance in Japan and cost reductions.

Electronic Devices: Lower Sales and Lower Operating Income

The Electronic Devices segment saw overall sales decrease due to yen appreciation and other factors. The Semiconductor business recorded lower sales, reflecting yen appreciation in addition to the effects of the March earthquake on System LSI manufacturing subsidiary. The LCD business also saw lower sales, even though displays for use in mobile devices such as smartphones reported a healthy performance, that was largely attributable to the effect of last year's sale of AFPD PTE., LTD, a manufacturing base for LCDs for PCs, as a part of business restructuring.

The segment as a whole secured a profit despite recording lower operating income.

Memories secured a profit, overcoming yen appreciation and price erosion. System LSIs reported a weak performance due to lower sales. The semiconductor business recorded lower operating income. The LCD business recorded higher operating income on a healthy performance, primarily for displays use in mobile devices such as smartphones.

Social Infrastructure: Lower Sales and Same Level of Operating Loss

The Social Infrastructure segment saw a decrease in overall sales, due to yen appreciation

and other factors. However, Thermal & Hydro Power Systems, Transportation Systems

and the IT Solutions business saw higher sales and the Medical Systems business saw flat

sales.

The segment as a whole saw an operating loss similar to that of the same period a year ago, due to yen appreciation and other factors. However, the Power Systems business, particularly Thermal & Hydro Power Systems, reported a solid performance, the IT Solutions business improved its performance and the Medical Systems business recorded higher operating income.

Home Appliances: Higher Sales and Improvement in Operating Income (Loss) (Moved into the Black)

The Home Appliances segment saw higher sales, due to a healthy performance by White Goods, including home air-conditioners, LED lighting and industrial air-conditioning.

Overall segment operating income (loss) improved and moved into the black, due to higher operating income (loss) in White Goods, including home air-conditioners and improvement in Lighting Systems.