Toshiba Q3 profit more than doubles on smartphone
Toshiba Corp’s quarterly profit more than doubled , It is driven by a boom in sales of NAND flash memory chips and liquid-crystal displays used in tablets and smartphones.
Samsung Electronics has reported last week its weakest profit in six quarters is also expected to benefit this year from booming demand for smartphones and tablets.
According to the Tomomi Yamashita, fund manager at Shinkin Asset Management”Smartphones are selling well, making demand for (Toshiba’s) memory products strong,”.
According to the Toshiba CEO Norio Sasaki, who took the helm some 18 months ago, has vowed to sharpen the focus of the sprawling conglomerate and has taken a hard line on costs across businesses from nuclear power stations to home appliances.
Toshiba is the world’s second-largest supplier of NAND chips, lowered its full-year sales target but lifted its net and pretax profit estimates because of an increase in non-operating income. It retained its full-year operating profit forecast.
The company has so far recorded higher operating income than originally anticipated, mainly as a result of healthy performances in memories, the LCD business and PC business, the direction of system LSIs is still uncertain at this point,” the company said in a statement.
Toshiba left its full year operating profit forecast unchanged at 250 billion yen ($3.05 billion), compared with an average estimate of 269.9 billion yen based on 22 analysts polled by Thomson Reuters I/B/E/S.
It lowered its full-year sales outlook 5.7 percent to 6.6 trillion yen but raised its net income forecast to 100 billion yen from 70 billion yen.
Toshiba also benefited from better-than-expected sales of televisions, however, the preformence was not as strong as analysts had expected, coming in lower than the average forecast of 50.2 billion yen in a survey of 5 analysts by Thomson Reuters
Toshiba also competes with Hewlett-Packard and Dell in personal computers.