Toshiba Slides After SanDisk Forecast Misses Estimates
Toshiba Corp. (6502), the second-largest maker of flash memory, fell the most in five months in Tokyo trading after SanDisk Corp. gave a second-quarter sales forecast that fell short of some analyst estimates.
Toshiba dropped as much as 4.4 percent, the most on an intraday basis since Nov. 10, to 323 yen and traded at 326 yen as of 10:12 a.m. in Tokyo. Milpitas, California-based SanDisk, the world’s largest maker of flash-memory cards, said yesterday sales will drop as demand has been weaker than it expected.
“Sentiment worsened because of SanDisk,” said Mitsuo Shimizu, an analyst at Cosmo Securities Co. in Tokyo. “It gave the impression that the whole chip industry may be in the same situation.”
Industry demand in the memory business was lower than expected in the first quarter, while supply grew faster than estimated, SanDisk (SNDK)’s Chief Executive Officer Sanjay Mehrotra said in prepared remarks yesterday. The trend will probably continue in the second quarter, he said, causing revenue to decline to about $1 billion. Analysts had expected sales of $1.28 billion, according to the average of estimates compiled by Bloomberg.
To contact the reporter on this story: Naoko Fujimura in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Tighe at email@example.com