May 8 (Bloomberg) -- Toshiba Corp. fell the most in two years in Tokyo trading after the Nikkei newspaper reported a weaker yen increased costs, causing the maker of memory chips, televisions and nuclear reactors to miss its profit forecast.
Toshiba declined as much as 7.8 percent, headed for the biggest drop since March 2011, to 497 yen and traded at 517 yen as of 10:28 a.m. Operating profit was about 200 billion yen ($2 billion), 60 billion yen short of Tokyo-based Toshiba’s estimate, in the year ended March 31, the newspaper reported, without saying where it got the information.
A weaker yen made parts Toshiba uses to make TVs and personal computers more expensive in Japan, eroding profit, the Nikkei reported. The Japanese currency has declined about 20 percent versus the dollar in the past six months.
“The Nikkei report disappointed investors,” Toshikazu Horiuchi, a manager at Iwai Cosmo Holdings Inc., said by phone. “Expectations for Toshiba also withered as the weaker yen might have hurt the company.”
Toshiba isn’t the source of the information in the Nikkei, Toru Ohara, a spokesman for the manufacturer, said by phone. The company will report earnings at 3 p.m. in Tokyo today.
Toshiba, the world’s second-biggest maker of flash memory, is focusing on its chip and energy operations while trying to rebuild its home-appliances business. Hisao Tanaka, who will succeed Norio Sasaki as president in June, plans to speed up overseas expansion to benefit from faster economic growth than in Japan, where the population is shrinking.
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