UPDATE 1-Toshiba doubles Q2 profit, sticks to outlook

* Sees 2010/11 op profit at Y250 bln vs consensus Y261.9 bln

* July-Sept op profit at Y71 bln, almost double previous year

* Popular smartphones, tablets boost NAND chip demand

* Toshiba shares close up 1.4 pct before results

TOKYO, Nov 9 (BestGrowthStock) – Japan’s Toshiba Corp (6502.T: ) stuck
to its full-year operating profit forecast, keeping it below
market expectations, citing concerns about an increasingly murky
economic outlook, despite brisk chip sales.

Growing sales of smartphones such as Apple Inc (Read more about Apple stock future.)’s (AAPL.O: )
iPhone, and the hot tablet PC market led by the iPad are boosting
demand for NAND flash chips, also used in digital cameras and
music players.

Toshiba, the world’s No. 2 NAND chipmaker after Samsung
Electronics (005930.KS: ), left its full-year operating profit
forecast of 250 billion yen ($3.1 billion) unchanged versus a
consensus of 261.9 billion yen in a poll of 17 analysts by
Thomson Reuters I/B/E/S.

Its quarterly profit came to 71.02 billion yen in
July-September, almost double that of the same period last year.

Last month, Toshiba, whose businesses also include nuclear
power plants, PCs, TVs and home appliances, raised its half-year
operating profit forecast by 49 percent on strong chip sales.

The company began to build a new chip plant in Japan this
year to meet growing demand. The factory in Yokkaichi, western
Japan, will be jointly operated with its production partner
SanDisk Corp (SNDK.O: ).

Archrival Samsung, also No. 1 player in the DRAM (dynamic
random access memory) sector, is facing slumping demand and
prices of the DRAM chips, mainly used in PCs.

Toshiba shares have dropped more than 17 percent so far this
year, underperforming a nearly 8 percent fall in the benchmark
Nikkei average (.N225: ).

The stock closed up 1.4 percent at 428 yen before the
results, against the Nikkei’s 0.4 percent fall.
(Reporting by Sachi Izumi; Editing by Anshuman Daga)

UPDATE 1-Toshiba doubles Q2 profit, sticks to outlook