Toshiba opts for tech outsider as former banker becomes CEO

New CEO 'deeply aware of the challenges' he faces, while troubled firm forecasts first profit in years

Toshiba Group has appointed as CEO a former banker who focuses on distressed companies.

The firm has also forecast its first annual profit in four years. Toshiba has been plagued by losses in recent times, but it has now forecast full-year net income of 520 billion yen instead of its previous outlook for a 110 billion yen loss.

Nobuaki Kurumatani will take over as CEO in April and oversee the sale of the $18bn (£13bn) chip unit, despite opposition from some activist shareholders.

Kurumatani currently heads the Japanese arm of private equity firm CVC Capital Partners and was previously an executive at one of Toshiba's main lenders, Sumitomo Mitsui Financial Group (SMFG).

Satoshi Tsunakawa will step down as CEO and become chief operating officer.

"I am honoured and delighted to accept this appointment, and deeply aware of the challenges I face," said Kurumatani.

"I will draw on all my experience and devote all my efforts to rebuilding Toshiba Group, by recovering and strengthening its financial base.

"I will reexamine the business portfolio and allocate necessary resources needed, and also inject a spirited commitment into the group's activities to improve its governance structure and rebuild its corporate culture by driving forward group unity."

Kurumatani said the past few years have not been easy for the firm, but is confident they can be overcome to "shape a stronger Toshiba".

"This company has a long and impressive history of creating new technologies and turning them into massive businesses, and I see my most important responsibility as reactivating this cultural DNA, and bringing all management resources together to focus on reviving Toshiba," he added.