Japan’s top chipmaker Toshiba corp. reports record loss
Japan’s top chipmaker Toshiba corp. posted record losses today amid the shrinking global demand due to the financial crisis.
Toshiba reported Friday a 343.6 billion yen ($3.5 billion) net loss for the fiscal year ended March. In comparison, they made a 127.4 billion yen profit in the previous year. This is the company’s biggest loss ever and first annual net loss in 7 years.
The company’s annual sales declined 13% (1010.8 billion Yen) to 6654.5 billion Yen.
The company said, “In the latter half of FY2008, the global economy worsened rapidly as the subprime loan crisis in the United States became a full-blown global financial crisis that started to impact significantly on the real economy from the third quarter. Europe, which had been relatively healthy, joined the United States by falling into recession, and the economies of China and other parts of Asia, which had enjoyed continuing expansion, also slowed dramatically. As a result, the global economy is caught in an extensive recession. The Japanese economy also went into recession, and is in an extremely severe condition characterized by substantial declines in exports and capital spending, a sharp downturn in corporate profits, rapidly worsening employment and shrunken consumer spending.”
You can take a look at the financial statement here (PDF File).
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