Toshiba Corp. plans to spin off unpromising core businesses, a move which would deprive the company of its status as a manufacturer of general electric and electronics products, a Toshiba official said Friday.
Under a three-year management program to be announced later this month, the company will sell or transfer operations that are not likely to generate stable profits so as to focus more resources on information technology, the official said.
The operations to be sold or transferred could even include Toshiba's mainstream businesses, such as the electric power plant business, the official said.
Of Toshiba's eight in-house companies, it will set high growth targets for Semiconductor Co., Digital Media Equipment & Services Co., and Information and Industrial Systems & Services Co., in the management plan for the business year starting in April, the official said.
The company will set moderate targets for Power Systems & Services Co. and Home Appliances Co., which are expected to grow steadily, the official said.
In addition, Toshiba will set a high growth target for i-Value Creation Co., which will be established April 1, he said.
Toshiba announced last month plans to launch a series of initiatives to reinforce its overall Internet-related business by setting aside 250 billion yen for capital spending in the area through 2003.
Toshiba is lagging behind rivals Fujitsu Ltd. and Sony Corp. in the Internet business. The firm has said it expects its Internet-related sales to reach 500 billion yen in 2003.
The company transferred its air conditioner business last April to a joint venture named Toshiba Carrier Corp., formed in Tokyo with Carrier Corp. of the United States.
The business was running at a loss under Toshiba, but now turns a profit.