Toshiba Outlines New Business Strategy

TOKYO (03/21/2000) - Toshiba Corp. today outlined a mid-term business strategy, with an emphasis on the Internet and information technology, that aims to push revenues up by a third while seeing 6 percent of its domestic workforce out of jobs.

The business plan represents the first concrete details the company has provided as to how its recently stated vision -- that its future will revolve around the Internet and information technology -- will be put into practice and what results can be expected. In particular, the company has identified mobile terminals and network technology as areas where it believes it can shine.

In the Internet and systems solution business sector, Toshiba outlined six core business areas in which it will push development: mobile applications, network consumer products, media cards, digital broadcasting, Internet services, Intelligent Transport Systems (ITS) and automotive electronics.

Its mobile- and network-related businesses drive will focus on areas including notebook PCs, hybrid mobile terminals, W-CDMA-based (Wideband Code Division Multiple Access) mobile terminals, Bluetooth devices, digital broadcasting and the SD (Secure Digital) memory card.

For Toshiba, the stakes are high. The company is pinning its hopes on the plan to turn around anticipated losses that are expected to be recorded this year for the second year in a row.

The company, which is predicting sales of 5.7 trillion yen (US$53.5 billion) in the current fiscal year, ending on March 31, says it hopes the plan will result in sales rising 36.8 percent to 7.8 trillion yen by the end of fiscal 2002, ending on March 31, 2003.

The largest single source of revenues is expected to be the electronic devices sector, which is predicted to see sales of 2.6 trillion yen in fiscal 2002, Toshiba said.

The next largest source of revenues is expected to be the digital media division with sales of 2.3 trillion yen, while the information, communications and industrial systems division follows with predicted sales of just under 2.3 trillion yen.

All three divisions are also expected to post significant gains in the current fiscal year. In contrast, sales in Toshiba's power systems and home appliance sectors are expected to grow by less than 3 percent.

Operating income is predicted to rise to 420 billion yen in fiscal 2002 from an anticipated 100 billion yen this year, while pre-tax income is expected to swing back into the black to the tune of 370 billion yen from a forecast loss of 45 billion yen this year. Net income is expected to rise to 200 billion yen in fiscal 2002 against a predicted net loss of 30 billion yen this year.

In addition to a series of corporate reforms designed to make the company more suited to the fast-changing industries it is focusing on, Toshiba said it will also adjust staffing levels. Growing business sectors will see more staff, but after reductions in other areas, the company will see a net reduction in staff.

Throughout the Toshiba group, 1,500 job losses are expected over the next three years.

Toshiba, in Tokyo, can be found online at

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