Toshiba Corp, the Japanese electronics giant, reported its first loss in 48 years when it dived into the red to the tune of $53.6m in the first half of its current year. But the company is expecting a second half recovery and projects net income for the year to be equivalent to $100.4m, a 64% fall. While revenues plunged 12% in the first six months to $13.4bn, the company predicts the total for the year will be down just 5% at $29.3bn. Toshiba clearly believes the worst is over. It suffered a first half hammering in the electronic devices and materials division when revenues slumped 14% to $3.6bn as a result of falling prices for DRAMs, color display tubes and liquid crystal displays. Capital investment in the chip division will be cut 29% but Toshiba has no plans to withdraw from the business. Senior managing director Kiyoaki Shimagami told a press conference that the company expects DRAM prices to stabilize. Toshiba’s information and communications systems sales fell 11% to $5.4bn. Figures converted at 119.2 yen to the dollar.
