Toshiba forecasts 2008 net loss of $3.5 billion

(MarketWatch) -- Toshiba Corp. said Friday it may have lost more money in the recently ended fiscal year than it had thought previously, raising its net loss estimate to 350 billion yen ($3.5 billion) from an earlier forecast of 280 billion yen.

However, Toshiba also lowered its operating loss, which doesn't include one-time charges and other special items. It now forecasts a 250 billion yen operating loss, compared to its previous projection of 280 billion yen. The disclosures were made by the company during the Tokyo Stock Exchange's midday recess Friday.
Expectation are for Toshiba to report a 269 billion yen net loss for the fiscal year that ended March 31, according to a consensus estimate of 15 analysts surveyed by Reuters.

The announcement followed a Nikkei newspaper report earlier in the day that said Toshiba was likely to revise down its operating loss estimate, owing to stabilizing prices for flash memory chips and other products, as well as strong contributions from its nuclear-power unit.
The Nikkei report was credited with helping boost Toshiba shares, which ended the morning session 4.4% higher.

Toshiba's cost cutting likely helped contain losses, while production cutbacks at its chip-making unit and by its rivals may have helped arrest declines in key product areas, including flash memory commonly used in digital music players, the report said.

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