Larger loss expected.
Toshiba is apparently planning to cut some 3,900 jobs after revising January’s 2008 financial forecast of a ¥280 billion loss to ¥350 billion. That’s down from a 125 billion profit in the 2007 financial year.
It’s not all doom and gloom, though. While the figured for net income are down, Toshiba’s operating income forecast was revised up by ¥50 billion, thanks to “improved profitability in the TV business and increased sales of System LSI and Memory Devices.” The overall larger forecast loss results from ¥150 billion less sales overall, hardly surprising in a recession.
A large part of that loss is accounted for by an ¥85 billion drawdown in deferred tax assets – whatever that means. Still, if Toshiba’s plans, as announced in January, to cut operating expenses by around ¥300 billion for this financial year succeed, combined with the expectation of better results across the board, then Toshiba may well be on track for a better 2009.