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.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a