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Toshiba profits sag

Company registers 72% slump in Q3 2011 profits

Toshiba has announced a 72% slump in quarterly profits.
Toshiba has announced a 72% slump in quarterly profits.

Toshiba Corporation has registered a 72% slump in quarterly operating profit and slashed its annual profit forecast. Profits sagged on the back of a strengthening yen and a struggling global economy, according to Reuters.

The floods in Thailand, which forced the company to halt some of its manufacturing lines, hit quarterly earnings hard.

Toshiba is the world's No2 flash memory chip maker and supplies both Samsung Electronics and Apple.

The company cut its annual operating profit forecast to $2.6 billion from $3.9bn for the year to March. That was below the $3.6bn consensus estimate of 23 analysts polled by ThomsonReuters.

The maker of electronic goods has benefitted from the sale of PCs and other devices using its Flash memory, but weak demand, especially for consumer goods such as computers and televisions has caused profits to fall.

Toshiba posted an operating profit of $137.7m yen for October-December, compared with an average estimate for a $771m yen profit in a poll of four analysts by Thomson Reuters.

Shares in Toshiba have fallen by one-third over the past 12 months, compared with a 14% drop in Tokyo's benchmark Nikkei average, according to Reuters.

Shares of Toshiba settled 1.8% lower on the news.