Although Toshiba's shares initially rose on the news it was to ditch HD DVD, its struggling next-gen disc format, it seems the stock market won't be so kind as the full financial implications are revealed.

A report from the Nikkei business daily suggesting bleak losses to be posted has seen the consumer electronics giant's share drop 2.3%.

The report states that Toshiba is likely to book a 100 billion yen ($986/£485 million) loss in its high-definition player business and post a full-year operating profit of around 250 billion yen, falling short of its outlook.

Toshiba has predicted a 50 billion yen loss on HD DVD for the financial year, but its decision to stop manufacture of HD DVD means production line changes that will double the cost.

"We did not announce this, and therefore we cannot comment", a Toshiba spokesperson said.

UPDATE: Toshiba has since posted a message on the "Investor Relations" area of its website, this reads:

"Reports in the media today stated the figure for the loss that Toshiba is expected to incur as a result of discontinuation of HD DVD business and the company's expected revised forecast of business results for Fiscal Year 2007, ending March 31, 2008."

"However, Toshiba has not yet made any announcement concerning these figures. Toshiba is reviewing the impact from the discontinuation of the HD DVD business, along with the progress of its other business operations, and will announce revised business forecasts for FY2007 as soon as this process is completed, if necessary."