Toshiba Mulls Withdrawal From LCD Display Business
Toshiba Corp is considering withdrawing from the LCD display business.
"Our LCD display business has been worsening, and we are in very difficult circumstances," said Fumio Muraoka, representative executive officer and corporate senior executive vice president and director of Toshiba, at a results briefing Jan 29, 2009. "We are now considering how to respond to the problem and if cost reduction is enough."
Toshiba's LCD display business, which is operated by Toshiba Mobile Display Co Ltd (TMD), posted an operating loss of ¥19.1 billion (approx US$211 million) during the period from April to December 2009.
"It was due to sales decline caused by shrinking demand, price decline, strong yen and so forth," Muraoka said.
Toshiba's loss in the LCD display business has been increasing for the past two years. It was ¥10 billion for the period from April to December 2007 and ¥16.2 billion for the corresponding period in 2008.
"We are now discussing all options," Muraoka said.
Correction Notice: In the last paragraph of the original article, we wrote, "'We are now discussing all options including withdrawal from the business,' Muraoka said." However, we deleted the phrase "including withdrawal from the business" after the public relations office of Toshiba Corp claimed, "Though Muraoka said Toshiba is discussing all options, he did not mean those options include withdrawal."