Kurumatani to be Toshiba CEO

Lloyd Doyle
February 14, 2018

Kurumatani, now the president of the Japanese arm of European private equity firm CVC Capital Partners, is a former deputy president of Sumitomo Mitsui Banking Corp, one of Toshiba's main lenders, which often have a strong influence on its management decisions.

Toshiba has appointed Nobuaki Kurumatani as representative executive officer and chairman of the company, effective 1 April. The current CEO, Satoshi Tsunakawa, becomes COO. The company has been losing billions of dollars in the nuclear energy operations.

When he worked for Sumitomo Mitsui Banking, Kurumatani played a role in rebuilding Tokyo Electric Power Co., now Tokyo Electric Power Company Holdings Inc., and other client companies of the bank.

"This company has a long and impressive history of creating new technologies and turning them into massive businesses, and I see my most important responsibility as reactivating this cultural DNA, and bringing all management resources together to focus on reviving Toshiba", he added.

Toshiba agreed in late September to sell Toshiba Memory, the world's second-biggest producer of NAND chips, to a consortium led by Bain Capital LP for US$18 billion to cover billions of dollars in liabilities arising from the now bankrupt United States nuclear power unit. And if the deal doesn't close by then, then Toshiba has the right to terminate.

Japanese electronics maker Toshiba has revised upward its earnings forecast for fiscal 2017, ending in March.

The new forecast compares with a consensus estimate of a 187.84 billion yen profit from eight analysts polled by Thomson Reuters I/B/E/S. It now expects to book a net profit of about 5 billion dollars, for its first net profit in 4 years.

The company is waiting for China to grant approval for chip deals and regulators as the deadline is 31st March.

Other reports by Iphone Fresh

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