By Shawn Schroter
TOKYO-- Toshiba Corp. said Thursday that it would stop making
and selling TVs for the North American market amid stiff price
competition.
The Japanese electronics maker said it would license its North
American TV business to Taiwan's Compal Electronics Inc. It also
said it would replace in-house development and sales with brand
licensing for its consumer TV business in regions outside
Japan.
"As the growth of global market is slowing down, and continues
to see harsh price competition, Toshiba has decided to build a new
business structure," the company said in a release. It added that
shipments from the new business would hit the North American market
in March.
Separately, the company separately reported a Yen71.9 billion
($611.70 million) group net profit for the nine month period from
April to December, up sharply from the Yen38.68 billion profit it
logged in the same period a year earlier. Toshiba cited a rise in
sales at its energy and infrastructure segment, reflecting a
significant increase in operating income in the nuclear-power and
railway-systems businesses.
The company, which also said Thursday it would adopt
international financial-reporting standards, kept its net profit
outlook unchanged for the fiscal year ending in March at Yen120
billion.
Write to Shawn Schroter at Shawn.Schroter@wsj.com
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