Toshiba earns significantly less from PCs and TVs

Toshiba’s sales in the quarter were significantly lower than in the same period last year, especially in ‘lifestyle’ products, including PCs, home appliances and LCD TVs. These divisions converted 76.3 billion yen less, equivalent to about 564 million euros.

The medical division of the Japanese electronics group, for imaging equipment and tomography systems, among other things, did a lot better. It posted 10 billion yen growth in the quarter, which ran from April to June 2015. Toshiba attributes the net 64 billion yen decline in sales in part to ‘risk factors’, such as natural disasters and legal issues, such as the accounting scandal. Negative growth of the economy in the home country itself and rapidly changing situations in various other markets, including political and economic, are also cited as causes.

With the large loss in the PC and TV division, there is increasing pressure on the interim CEO of the company, Yahoo Finance writes. Interim CEO Masashi Muromachi took over from Hisao Tanaka after the latter resigned as a result of the accounting scandal. Muromachi said Monday that he is considering a thorough vetting of the underperforming divisions. Analysts therefore expect major austerity operations in the PC and TV divisions, among others.

Muromachi also said he does not want to stay on as CEO for long. A successor should be ready after all major austerity operations have been completed.