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Chip boom compensates for TV decline as Toshiba forecasts profit jump

Despite disappointing financial results for the year that ended in March, Japanese manufacturer Toshiba is expecting to stage a strong recovery over the next 12 months thanks to healthy demand for flash memory chips.

A supplier to Apple among others, Toshiba is now the world’s number two producer of NAND flash memory chips after Asia rival Samsung, and continued growth in the segment has seen the firm forecast a 34 per cent jump in operating profit for the forthcoming fiscal year, reports Reuters.

Toshiba said on Wednesday it expects its profit to hit 260 billion yen (£1.6 billion) for the year ending March 31, 2014.

Such a performance would help redress the 4.1 per cent decrease in operating profit recorded by the company for the year ending this March, with the 194.3 billion yen (£1.27 billion) posted undercutting its 260 billion yen (£1.69 billion) January guidance.

Telling a familiar tale, Toshiba blamed last year’s weak performance on declines in its digital products unit, which makes televisions and PCs.

The TV division reportedly accounted for 50 billion yen in losses alone for 2012/13, replicating the woes of compatriot Panasonic which is now considering culling its TV business altogether.