Toshiba Soars on Upbeat Outlook

Shares of Toshiba gained almost four percent Tuesday, after the company said it expects its annual operating profit to rise by 25 percent this year.

Japan’s biggest chipmaker says profits from its chip operations would more than double to $1.8 billion.

This would put the company on track for a second straight year of record earnings.

But Toshiba warns that potential power outages stemming from the March 11th earthquake in northwest Japan could jeopardize that outlook.

The impending shutdown of the Hamaoka nuclear plant in central Japan only heightens the potential for power shortages and reduced production from Toshiba – the firm’s key Yokkaichi plant lies in the affected area.

Since the March disaster, Toshiba has been rushing to secure supplies in an effort to normalize production as early as in October, hoping to win back clients who may be planning to reduce dependence on Toshiba’s chips.

Meanwhile, Japanese media say Toshiba is now competing with U.S. and European rivals to buy Landis+Gyr.

The Swiss company makes measuring meters used in energy and other smart grids, with the winning bid expected to touch as much as $2.5 billion.

Foto: NTD