Toshiba looks to emerging markets

TOKYO —

Toshiba Corp is optimistic that it can vastly boost its operating profit and investment in capital spending over the next three years as it counts on expanding its lineup of consumer products in rapidly growing emerging markets.

Toshiba President Norio Sasaki says the electronics giant will target a group operating profit of 450 billion yen by the year through March 2013, compared with 250 billion yen it anticipates for the current financial year, on sales of 8 trillion yen, against 7 trillion yen expected this year.

As part of its medium-term business plan, Toshiba, which makes products ranging from televisions to NAND flash memory to nuclear power plants, will also aim to raise its overseas sales ratio to 63% in fiscal 2012 from 55% in fiscal 2009.

‘‘With the rise of emerging countries, it’s clear which markets we will go after,’’ Sasaki says.

Specifically, he predicts that the share of the company’s sales in emerging markets is expected to grow to 31% by fiscal 2012 compared with 24% in fiscal 2009, while the domestic sales ratio is likely to decline to 37% from the current 45%.

Toshiba plans to roll out a total of about 80 lower-priced models of televisions, personal computers, refrigerators and washing machines in the current business year for emerging markets, particularly in China.

‘‘I think we can compete well if we actively introduce emerging market models that are within the price range of the consumers,’’ Sasaki says.

The firm will make capital investments and loans totaling 1.3 trillion yen over the next three years through fiscal 2012, up 74% from fiscal 2009, as it pours resources into reinforcing its semiconductor, rechargeable battery and social infrastructure businesses.

‘‘We believe mergers and acquisitions will be one agent for growth so we will actively pursue them,’’ Sasaki says, indicating a potential deal could be studied in the social infrastructure business, which includes industrial motors, railways and nuclear power plants.

Toshiba will also allocate 1.07 trillion yen for research and development costs over the three-year period, following a recent trend for Japanese firms to resume their R&D and investment spending on growing confidence about global economic conditions.

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