Loss on the horizon for Toshiba

Electronics firm to report first quarterly loss in seven years

Toshiba expects its results to be hit by slowing demand for microprocessors

Toshiba is reported to be expecting its first operating loss in seven years due to a downward sales trend across the chip manufacturing sector.

Factors influencing the negative conditions in the processor industry include oversupply and slowing demand for chips used in devices such as portable music players and digital cameras.

In its previous results for the fourth quarter of 2008, Toshiba had already reported a loss of $1.76 bn (£1.24bn), against a profit of $467m (£331m) in the prior year.

Elsewhere in the chipmaking sector, the European Union anti-trust case between AMD and Intel continues, with the latter attempting to delay proceedings in order to buy more time to respond.

AMD's claim is that Intel has illegally offered discounts to vendors that agreed to favour Intel chips or stop offering systems that contained AMD chips for the past decade.

Both sides have been locked in anti-trust battles in courts worldwide over Intel's alleged anti-competitive practices since 2005.