Toshiba FY Sales Slump, But 2013 Looking Up

Written by Oonagh Reidy     09/05/2013 | 10:01 | Category: INDUSTRY

Toshiba sales surge after a battering in 2012.

Toshiba FY Sales Slump, But 2013 Looking UpFalling demand for Toshiba TVs, AV products pushes full year 2012 sales down 5% (-300bn yen) to US$$61,7 bn, although Q4 sales surged. 

Toshiba profit  for FY 2012 to March 31 rose 7.4% to 77.5bn yen, due to improved currency exchange rates,  although Q4 (Jan- March '13), profits slumped more than 60% to US$244.8 m

Despite the profit fall in fourth quarter, Toshiba sales rose in all divisions in the first three months of 2013 - up 1% overall. 

Toshiba Visual and Electronics devices were the biggest losers overall in 2012, and fell 14% and 7% respectively, blamed on "market downturns" and the divestiture of its LCD business.  

The electronics giant noted the "deepening decline" in demand for LCD TVs in its native Japan, Europe and the US, while PCs were also generally "flat".

It made an operating loss in its Digital Products business in FY12 - one of its only divisions to do so - although the loss contracted from FY 11 to -24.4bn yen. 

However, Home Appliance sales rose 3%, Retail Information Systems and Office Equipment were also up in 2012 as were other non-CE divisions including Power systems and Social Infrastructure. 

"The global economy remained uncertain," Toshiba said in a statement, noting "the slowdown in growth in emerging economies, such as China and Southeast Asia, also had a negative effect."

The Japanese giant wants to be a "world leading diversified" company, as demand for electronics goes down.

Toshiba has pledged to cuts costs and advanced structural reforms across the business, particularly in Digital division including Visual Products, maximize synergies and rationalize operations. 

However, Toshiba predicts FY 13 sales, profits will pick up - rising to 6,100.0 bn yen and 100bn yen respectively.