Toshiba, the Japanese electronics group, expects to lose Y110bn ($1.1bn) this year on its now-defunct HD-DVD business after conceding defeat to rival Sony in the battle to create a standard for high-definition discs.

On Wednesday, Toshiba lowered its net profit estimate for the year ending March 31 by 31 per cent to Y125bn to reflect the HD-DVD loss as well as plunging prices for Nand flash-memory chips, another of its core products.