Toshiba Says Chip Slump Will Erase Profit

Japanese electronics maker Toshiba Corp. said a severe semiconductor slump and weak demand for computer products would wipe out its profit in the current business year. Toshiba said a faster than expected fall in memory chip prices and sluggish demand for computer monitors and liquid-crystal display panels took a particularly heavy toll in the first half. The company expects to post a group net loss of $190.7 million for the first six months. Toshiba was the second electronics giant this month to warn of dismal earnings ahead, after Hitachi Ltd. Nishimuro said that although Toshiba’s profit would tumble in the first half, a strong recovery was expected.