Toshiba, NEC May Have Posted Losses on Job Cuts, Chip Slump
By Minoru Matsutani
quote.bloomberg.com
Tokyo, April 23 (Bloomberg) -- Toshiba Corp., the world's second-largest chipmaker, and NEC Corp., Japan's second-largest, will probably report fiscal fourth-quarter losses because of the costs of slashing jobs and shutting unprofitable businesses.
Toshiba may post a loss of 66 billion yen ($507 million), or 21 yen a share, in the three months ended March 31, the average of four forecasts by analysts surveyed by Bloomberg News showed. NEC probably lost 120 billion yen, or 70 yen a share, in the period, analysts said.
Japanese chipmakers are clawing out of the industry's worst slump last year by spending billions of dollars to reduce staff and reorganize businesses. While Intel Corp., the world's largest chipmaker, said sales increased in the first quarter from a year ago, Japanese chipmakers may be slower to recover because of rising development costs and competition from Taiwanese and Korean rivals, investors said. |
