Toshiba Forecasts 400 Billion Yen Operating Profit for 2015

Toshiba Corp. (6502), the Japanese maker of products from flash-memory chips to steam turbines, forecast a 2015 operating profit more than 50 percent above its 2013 estimate as it shifts to focus on energy and semiconductors.

Operating profit may rise to 400 billion yen ($4.1 billion) for the year ending March 2016 from an estimated 260 billion yen this fiscal year, the Tokyo-based company said in a statement today. The company forecast 2015 sales of 7 trillion yen.

President Hisao Tanaka plans to boost production of flash memory chips and speed up expansion abroad with its energy operations. The company is reorganizing its television business after the division lost about 100 billion yen in the past two years, hurt by competition from other makers including Samsung Electronics Co.

Toshiba fell 3 percent to 417 yen in Tokyo trading, as of 2:16 p.m. The stock has risen 23 percent this year, compared with a 34 percent gain for Japan’s benchmark Nikkei 225 Stock Average.

To contact the reporter on this story: Naoko Fujimura in Tokyo at nfujimura@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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