Wednesday, May 13, 2009

Toshiba to Raise Fun through Equity Financing and Bond

Japan-based multinational company, Toshiba Corp., has posted a net loss of Y184 billion in the fourth quarter of the last year ending to March. Though the loss was a bit lower than what was expected initially, Toshiba is still struggling to come back in profit. With this fourth quarter loss, Toshiba’s overall net loss in the last fiscal year stands at Y343.6 billion, compared to Y127.4 billion year-earlier profit. Revenue in the fourth quarter also decreased significantly as it made Y1.67 trillion profit, a 20% decrease from year-earlier Y2.10 trillion. In the same way, Toshiba’s revenue in the last fiscal year was the clear reflection of its doom business. The company experienced 13% decrease in its yearly revenue to Y6.65 trillion, compared to year-earlier revenue of Y7.67 trillion.

Toshiba is world’s fifth largest chip maker, but the company faced lots of problems in their chip business over the last one year. Moreover, their consumer product business did not churn out any good result. However, the company is now planning to raise 313.1 billion yen (US$3.1 billion) through equity and it will also sell bonds pricing from Y170 billion to Y180 billion. Toshiba is not expecting to come back in profit this year, but it expects less loss then the previous year.

Related article:

The Wall Street Journal