Toshiba Corp. President Taizo Nishimuro will likely remain in the top post even though the firm is expected to post losses for a second consecutive business year, informed sources said.
Earlier speculation had it that Nishimuro, who will complete his second two-year term in June, will step down when his current term ends to take responsibility for the losses.
With the recent improvement of the semiconductor market, thanks to the robust sales of mobile phones and personal computers, however, the company now sees brighter prospects, the sources said.
In its projected fiscal 1999 results, announced Thursday, Toshiba revised its consolidated sales estimate to 5.7 trillion yen, up by 50 billion yen from its previous prediction a month ago. Net losses are now projected at 30 billion yen, a drop of 20 billion yen.
Also behind the firm's decision is the lack of appropriate candidates to succeed Nishimuro as the company attempts to carry out massive restructuring and organizational changes, the sources said.