Toshiba raises financial outlook on strong growth

Toshiba raised its half-year financial forecast on Friday citing stronger than anticipated growth in several of its businesses including its electronic components sector. The revision comes a week ahead of Toshiba's earnings announcement.

The company predicted in late July that it would do no better than break-even for the April to September period but on Friday it said it now expects a net profit of YEN 14.6 billion (US$126.5 million). Last year it achieved a net profit of ÂYEN 8.4 billion in the same period.

Sales for the half year are expected to reach YEN 2.9 trillion, it said. Toshiba had previously predicted sales of YEN 2.88 trillion and achieved actual sales of YEN 2.78 trillion in the first half of the last financial year.

Toshiba attributed the revision to better than expected growth in its semiconductor business, which will help its overall electronic devices segment. Toshiba is one of the four companies behind the Cell processor that will go into Sony Computer Entertainment's upcoming PlayStation 3 games console as well as a major manufacturer of flash memory chips and other consumer electronics-related devices.

Good results from its industrial and power systems business and services and medical systems business, both part of its Social Infrastructure segment, also contributed to the new forecast, it said.

Social infrastructure and electronic devices are respectively Toshiba's second and third largest business segments in terms of sales after digital electronics.