Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Toshiba Falls on Report It Missed Profit Forecast: Tokyo Mover

Visitors look at a prototype of Toshiba Corp.'s 84-inch Regza 4K television at the company's booth at the Finetech Japan exhibition in Tokyo. Photographer: Kiyoshi Ota/Bloomberg
Visitors look at a prototype of Toshiba Corp.'s 84-inch Regza 4K television at the company's booth at the Finetech Japan exhibition in Tokyo. Photographer: Kiyoshi Ota/Bloomberg

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.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.