Lagging home electronics another headache for scandal-hit Toshiba

Lagging home electronics another headache for scandal-hit Toshiba
Toshiba President Hisao Tanaka speaks at a press conference on May 15.

TOKYO - Its sluggish consumer electronics operations are adding the woes of Toshiba, which is already in the midst of an accounting scandal.

The consumer electronics-oriented Lifestyle Products and Services Group of the Tokyo-based electrical machinery maker booked an operating loss for three consecutive years until fiscal 2013. In fiscal 2014, the group also had forecast a loss of 48 billion yen ($393 million) due to ballooning costs of structural reforms in the personal computer business.

Furthermore, sales of refrigerators and washing machines have been slow since the beginning of this year.

Though the company dropped its earnings outlook in response to improper accounting, the group was projected to report an impairment loss in the tens of billions of yen because of reduced profitability.

Toshiba manufactures most of its household appliances overseas to counter the strong yen. But this has strategy backfired with the recent drop in the yen's value, leading to declining profit margins of imported products and weakening price competitiveness.

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