Toshiba denies reports it is quitting TV manufacturing

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Toshiba denies reports it is quitting TV manufacturing

KWANCHAI RUNGFAPAISARN
THE NATION, DPA

TOSHIBA Corporation has denied reports about the company's withdrawal from TV manufacturing, including the closure of its television facility in Indonesia, which is one of its sources for export to many markets in Asean, including Thailand.

Toshiba is the No 1 Japanese brand in the Thai TV market. Television sets also contribute about 40 per cent of sales at Toshiba Thailand, together with home appliances, which contribute about 55 per cent, with the remaining 5 per cent from information technology.

In a statement, the company noted that articles appearing in several |publications on Thursday contained reports on the future of Toshiba |Corp's TV business, saying the company would sell its TV factory in |Indonesia and withdraw from manufacturing.

They also reported that the company would downsize and carry out other structural reforms in its TV, personal-computer and home-appliance businesses.

"We have not made any such announcements, and these reports are not based on information provided by the company," Toshiba said.

The statement added that the company was promoting fundamental structural reforms of businesses facing "operating challenges", and towards this all possible measures were under review, without limitation.

Measures under consideration, including for the TV business, include securing further improvements in business efficiencies and business restructuring with other companies. However, nothing has been decided at present, and no concrete agreements have been made with specific companies.

Toshiba said it would make "timely" announcements on matters related to the structural reforms, including for the TV business, once they become available.

Kyodo News reported on Thursday that Toshiba was to sell its television production plants abroad in the wake of an accounting scandal.

The move would be part of a wider cost-cutting strategy, which could include the consolidation of its loss-making PC and household-appliance departments with those of other companies, the report said, citing an unnamed source.

Toshiba was the first company to develop a colour television in 1959, but has been losing market share and revenue in the sector amid increasing competition and slowing demand. The conglomerate was expected to cut several hundred jobs as part of the restructuring of the television, PC and appliance branches, which are all losing money, Kyodo said.

Toshiba admitted last year that it had inflated profit reports since 2008 by a total of 224.8 billion yen (Bt66 billion), in order to improve the apparent performance of its unprofitable divisions.

The company and shareholders have launched separate lawsuits against the former management |over the deception and subsequent drop in stock value. Toshiba was thought to be refocusing on its divisions that serve the enterprise sector, including in nuclear technology.

Source: http://www.nationmultimedia.com/business/Toshiba-denies-reports-it-is-quitting-TV-manufactu-30274767.html

-- The Nation 2015-12-12