* LCD profit could be Y10 billion vs forecast for zero-CEO
* Jan-Mar demand for NAND likely stronger than Oct-Dec-CEO
* Effects of NAND plant stoppage unclear until 2011-CEO
* Toshiba to open TV plant joint venture in Egypt-company
(Adds details, comments)
By Kentaro Hamada and Isabel Reynolds
TOKYO, Dec 16 Toshiba Corp (6502.T) may turn its
first annual profit on liquid-crystal display (LCD) panels in
four years as sales of smartphones and tablet computers boom, the
company's CEO said in an interview on Thursday.
Norio Sasaki also said he expected demand for NAND flash
memory chips to be stronger in the January-March quarter than in
the current quarter ending this month. NAND is used in various
electronics products including Apple Inc's (AAPL.O) iPhone.
"If all goes well, it's possible we could see profit in three
figures this year," Sasaki said of the LCD unit, implying at
least 10 billion yen ($119 million) in the Japanese counting
system, topping the company's forecast for break even.
Sasaki, 61, took the helm 18 months ago, vowing to sharpen
the focus of the sprawling conglomerate, taking a hard line on
costs across businesses from nuclear power stations to home
He said he would be cautious about big investments in the
volatile LCD sector. Earlier this week Toshiba denied a media
report it was planning to spend about 100 billion yen on a new
plant in Japan, mainly to supply Apple. [ID:nSGE6BC0CM]
"Nothing is decided on further investment amid the current
volatility, although the demand is there," Sasaki said. "Profits
would rise quickly. But when they stop rising, you have to make
sure you don't fall into the red."
One U.S. analyst said this week that Apple's demand for NAND
could double next year and some estimate Apple already consumes
about a third of global supply.
Sasaki said that the effect on NAND shipments of a brief cut
in power to the company's Yokkaichi plant in central Japan on
Dec. 8 would not become clear until at least the new year. The
outage forced it to halt operations at the plant until Dec. 10.
Toshiba, the world's second largest supplier of NAND chips
after South Korea's Samsung Electronics Co (005930.KS), had
previously said shipments could fall by up to 20 percent in
January and February.
The effect on Toshiba's profits is also unclear, because the
factory stoppage is likely to boost prices, Sasaki said. Toshiba
is building a fifth NAND facility at Yokkaichi that is expected
to be complete in spring of next year, but he declined comment on
when it would start production.
Separately, Toshiba announced on Thursday that it would open
a LCD TV manufacturing joint venture in Egypt next year, in an
effort to take advantage of an expected rise in demand in the
Middle East and Africa.
(Reporting by Isabel Reynolds and Kentaro Hamada; Editing by
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