Toshiba Shares Decline After Chipmaker Cuts Revenue Forecast
Toshiba Corp., Japan’s biggest memory-chip maker, fell to the most in nine months in Tokyo trading, after the company cut its annual revenue forecast.
The shares lost 6 percent to 467 yen at 10.15 a.m. on the Tokyo Stock Exchange, their steepest decline since Apr. 28. The benchmark Nikkei 225 Stock Average dropped 0.5 percent.
Toshiba on Jan. 29 cut its annual sales forecast 5.9 percent, citing a global recession that’s more “persistent” than the company had anticipated.
“The market was hoping for an upward revision and strength in NAND flash but clearly that’s not been as fast as people expected,” said Damian Thong, a Tokyo-based analyst at Macquarie Group Ltd. NAND flash memory stores data in devices such as mobile phones and digital cameras.
Revenue will be 6.4 trillion yen ($71 billion) in the year ending March 31, said the Tokyo-based company. That compares with the 6.8 trillion yen it had previously predicted. Toshiba maintained its projections for an annual net loss of 50 billion yen and an operating profit of 100 billion yen.
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