Toshiba economies of scale: semiconductors to nuclear plants
Or put another way from chips to atoms the diversity of multi-product, global organisation can be quite breathtaking and very haiku tempting. Gaberlunzie sees that Toshiba Corp expects its operating profit to more than double over the next three years as it cuts costs, ramps up capacity for its semiconductors and seeks nuclear plant orders.
It also expects capital spending to amount to a
cumulative ¥2.2trn ($21.4bn) in the next three
years to March 2011, of which more than ¥1trn
($9.7bn) would go to its semiconductors. Toshiba is racing to build two new NAND flash memory plants and expand capacity to build chips, hoping to beat price falls with economies of scale.
It also aims to win 33 nuclear plant orders world wide by 2015 and post a return on its acquisition of US nuclear power firm Westinghouse in 13 years, a whole year earlier than previously stated. Cost cuts throughout its operations, which range from refrigerators to MRI machines, will be key to raising profitability.
Source: http://seekingalpha.com/
Courtesy www.americanenergyindependence.com/images/ The Westinghouse AP1000 cutaway