Japan's Toshiba Corp said yesterday it aimed to more than double operating profit over the next three years as it focuses on semiconductors and nuclear power plants after suffering defeat in the DVD format war.
The upbeat forecast came despite growing headwinds for Japan’s technology giants amid fierce global price competition and a stronger yen, which is bad for overseas earnings.
Toshiba is targeting an operating profit of ¥500 billion (US$4.8 billion) in the year to March 2011, up from ¥238.1 billion last year, when earnings slipped amid tough competition, Toshiba president Atsutoshi Nishida told reporters.
Toshiba, which recently called it quits in the next-generation DVD format war, is targeting revenue of ¥10 trillion, up from ¥7.67 trillion last year.
“We aim to achieve high growth and profits in all business domains and reinforce our global business expansion,” Nishida said.
The group plans capital spending of ¥2.2 trillion on new plants and equipment over the next three years, up from about ¥1.7 trillion over the previous three years, to expand its semiconductor and nuclear power businesses. It will spend a further ¥1.4 trillion on research and development.
Toshiba is a leading manufacturer of NAND flash memory chips that are used in iPods and other digital music players, and recently announced plans to invest ¥1.8 trillion along with US partner SanDisk Corp in a new factory in Japan.
The Japanese giant aims for a 40 percent rise in sales of electronic devices over the next three years and a similar increase in digital products such as televisions and computers.