Toshiba Corp., the nation's biggest chip maker, said Wednesday it slashed its forecast for operating profit and sales for the next fiscal year after the global slump drove it to post its first net loss in seven years.
Operating profit, or sales minus the cost of goods sold and administrative expenses, will probably be ¥250 billion ($2.6 billion) in the 12 months ending in March 2011, half the amount targeted in May 2008, the Tokyo-based company said.
Toshiba cut the estimate for sales by 25 percent to ¥7.5 trillion.
President Norio Sasaki, 60, moved in June from running Toshiba's nuclear-power, transportation and broadcasting-systems businesses, to replace Atsutoshi Nishida and restore profitability.
The company, which also makes nuclear reactors and medical systems, will cut capital spending to ¥1.1 trillion for 2009 to 2011, from ¥1.64 trillion in the preceding three-year period, Toshiba said. Research and development costs will be reduced to ¥1 trillion from ¥1.17 trillion.