TOKYO Toshiba Corp. reported record sales and net profit on Thursday (April 26) for the fiscal 2006 ended on March 31.
Toshiba said annual sales reached ¥7.16 trillion ($60 billion), up 12 percent compared to the previous year. Operating profit totaled ¥258 billion ($2.2 billion), the highest since 1989.
Toshiba's semiconductor business grew by 25 percent to nearly ¥1.3 trillion ($10.6 billion). All chip sectors, including memory, system-on-chip, discrete ICs and LCDs increased. "NAND prices dropped, especially in the second half. The decline was about 70 percent for the year, but a large increase in shipments enabled a 38 percent growth in our memory business," said Tomio Muraoka, Toshiba's corporate executive vice president.
Operating profit for the semiconductor business reached ¥128 billion ($1.07 billion), about ¥5.7 billion ($48 million) less than the year before, but the "semiconductor business still yields about half of the whole company's profit," said Muraoka.
Toshiba is forecasting that sales will grow next year by 9 percent to ¥7.5 trillion (about $62.9 billion). It also expects that price declines in the NAND market will continue, dropping by as much as 50 percent by early next year.