Toshiba opts for tech outsider as former banker becomes CEO

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The firm made its forecast as it announced that in the nine months to December it saw a net profit of JP¥27 billion, reversing a JP¥532.5 billion loss for the same period a year ago. Nobuaki Kurumatani is going to be the CEO of the company.

Toshiba says it has picked a new chief executive to lead its revival.

While at the bank, he was involved in arranging a government-led bailout plan for Tokyo Electric Power after the 2011 Fukushima quake and tsunami disaster.

Failure to get approval would be vastly beneficial to Toshiba because it could then keep or IPO the unit, or IPO a part of the unit and still retain control.

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. Now the company is focussing on making a net income for the year as 520 billion yen. Toshiba has also reappointed Satoshi Tsunakawa to his current position of representative executive officer and president of the company after the ordinary general meeting of the shareholders scheduled for June.

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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.

The share issue has helped ease pressure to complete the sale of the chip unit by the end of March - a deadline it is widely viewed as unlikely to meet due to regulatory reviews in China.

The chip unit, the subject of a long and hotly contested auction before the Bain-led consortium was finally chosen, has seen earnings surge on booming demand for semiconductors. All the profit will come from the memory unit.

Toshiba is will once again be earning a profit in the following fiscal year after it sold off its chip and nuclear energy businesses.

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