Toshiba Corp, the Japanese computing and consumer electronics giant, expects to break even in its current financial year after a huge slow-down in growth which leads the company to expect revenues to show only a 1% increase to the equivalent of $40.74bn (see Top Stories). Consolidated results for the half year to September 30 showed Toshiba made the first net loss in 23 years with a $175m deficit compared with a net profit of $71m at the same stage last year. Mid-term sales showed a 5% decline to $18.51bn with only the services sector showing any growth. Information and communication systems showed a 2% decline in revenues, though a 13% fall-off in the domestic market was partially offset by a 12% growth in overseas sales. Toshiba reports that operating profits have risen substantially, mainly due to improved margins in its PC operations. But falling prices in PC components hammered profits in 64MB DRAMs, color display tubes and liquid crystal displays. Toshiba senior managing director Kiyoaki Shimagami forecasts that PC sales will remain buoyant and domestic investment in IT and communications will expand in the second half of the year.
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