TOKYO (AP) — Japan's Toshiba Corp. is still evaluating how its decision to pull out of the HD DVD business will affect its earnings, the company said Thursday.
''When we have determined if a revision to our earnings forecast for the fiscal year ending March is necessary we will release it as soon as possible,'' the Japanese electronics maker said in a statement.
Japan's main business daily The Nikkei reported Thursday that Toshiba expects to rack up a loss of 50 billion yen (US$498 million; euro22 million) in discontinuing its next-generation DVD business.
Total HD DVD losses could reach as high as 100 billion yen (US$995 million; euro643 million) for the fiscal year ending March 31, The Nikkei said in an unsourced story.
The report prompted traders to sell the company's shares amid a broad drop on the Tokyo Stock Exchange. Toshiba's stock was down 3.81 percent at 706 yen (US$7.03; euro4.54) in late afternoon trading.
Toshiba announced in February that it will no longer develop, make or market HD DVD players and recorders, handing a victory to the rival Blu-ray disc technology in the format battle for next-generation video.
Despite being a possible blow to Toshiba's pride, analysts have said they expect the exit to lessen the potential damage in losses from HD DVD operations. Goldman Sachs has said pulling out would improve Toshiba's profitability between 40 billion yen and 50 billion yen (US$398 million-US$498 million; euro257 million-euro322 million) a year.
HD DVD supporters included Microsoft Corp., Intel Corp. and Japanese electronics maker NEC Corp.
Blu-ray technology is back by Sony Corp. and Matsushita Electric Industrial Co. — which makes Panasonic brand products — as well as major Hollywood movie studios including Warner Bros. Entertainment, Walt Disney Co. and News Corp.'s Twentieth Century Fox.
