07.27.09
$3.9 Billion ($76.6B total)
KEY EXECUTIVES:
Tadashi Okamura, Board Chairman
Atsutoshi Nishida, Director, President and CEO
Toshiya Miyaguchi, President, Toshiba America
Medical Systems
Lawrence Dentice, General Manager and Sr. VP, Toshiba America Medical Systems
Kevin Abbott, Sr. VP, CFO and Treasurer,
Toshiba America Medical Systems
Girish T. Hagan, VP, Marketing
Aaron Hudy, VP, Sales
NO. OF EMPLOYEES: 198,000 (total)
GLOBAL HEADQUARTERS: Tokyo, Japan
Several years ago, executives at Toshiba Corp. began looking for a way to better convey the company’s core values, identity and management style to stakeholders and the general public. After much soul-searching, they decided to go with a simple, but effective phrase: Toshiba Leading Innovation.
“Toshiba adopted its corporate brand tagline to clearly demonstrate the value that we promise to our customers and society, and to emphasize that through continuous innovation in all areas of its business activities, Toshiba is determined to attain sustained growth with high profit,” executives said in the company’s 2007 annual report.
The effects of Toshiba’s rebranded tagline on the general public have been difficult to gauge. Its influence on the company’s bottom line, however, has been easier to quantify. After introducing the rebranded tagline during fiscal 2006, net sales at the Japanese electronics giant rose considerably, going from $60.3 billion in fiscal 2006 to $76.6 billion in fiscal 2007. Net sales in the company’s Medical Systems business jumped 26 percent during that same period, going from $3.1 billion in fiscal 2006 to $3.9 billion in fiscal 2007, ended March 31, 2008. Operating income for the Medical Systems business increased 23.7 percent in fiscal 2007 to $305,470.
Both net sales and operating income in Toshiba’s Medical Systems business fell in fiscal 2008, as deteriorating economic conditions slowed demand for diagnostic imaging systems among hospital customers. Net sales slid 6 percent to $3.68 billion, while operating income dropped to $244,690, according to the company’s fiscal 2008 earnings release.
Though the sales figures and operating income in the Medical Systems business tell a different story, Toshiba executives said the Japanese and U.S. markets for diagnostic imaging systems shrank by 15 percent in fiscal 2007 as “administrative initiatives to control medical costs cooled markets in advanced countries.” The contraction, however, was slightly offset by expanding markets in Asia, the Middle East and Latin America.
Toshiba took advantage of the opportunities in those markets by promoting sales of the Aqulion 64, a 64-slice CT scanner equipped with 64 detector channels, 3-D cone beam algorithms and volume reconstruction. The Quantum detector enables the Aquilion CT scanner to acquire 64 simultaneous slices of 0.5 mm with each 400-millisecond gantry revolution.
The company promoted other items as well, including an automated X-ray system that helps reduce procedure time; a medical resonance system that provides doctors with faster, more accurate scans; and an X-ray system that provides for head-to-toe and fingertip-to-fingertip coverage without having to pan or pivot the X-ray table.
One of the largest product launches of fiscal 2007 turned out to be the Aquilion ONE, an advanced diagnostic imaging system that provides doctors with a three-dimensional depiction of any body organ as well as the blood flow and function of that organ. The Aquilion ONE can scan one organ—including the heart and brain—in one rotation, as it covers up to 16 cm of anatomy using 320 ultra high resolution 0.5 mm detector elements. Since its launch in November 2007, the Aquilion ONE system has been installed in hospitals and imaging centers throughout the United States and Puerto Rico. The product even received the endorsement of the U.S. Department of Health and Human Services, as the National Institutes of Health installed the system in its facilities.
Toshiba’s Medical Systems business is grouped within the company’s Social Infrastructure segment, one of four business units within the firm. The Social Infrastructure segment, which includes the Medical Systems and Power Systems & Industrial Systems divisions, is one of the top revenue generators for the company. In fiscal 2007, the division reported $24.3 billion in net sales, a 39.6 percent increase compared with the $17.4 billion in sales the division posted in fiscal 2006. Sales were flat in fiscal 2008—the segment generated $24.4 billion, according to the latest earnings report.
Toshiba’s most lucrative segment ($25.1 billion in fiscal 2008 sales) is Digital Products, which includes the personal computers division. The company’s Electronic Devices segment includes Semiconductor Business and LCD Business divisions, which helped generate $13.5 billion in sales during fiscal 2008. The Home Appliances segment does not contain any business divisions but serves as a “housing” unit for such companies as Toshiba Lighting & Technology Corporation, Toshiba Home Appliance Corporation, and Toshiba Consumer Electronics Holdings.
KEY EXECUTIVES:
Tadashi Okamura, Board Chairman
Atsutoshi Nishida, Director, President and CEO
Toshiya Miyaguchi, President, Toshiba America
Medical Systems
Lawrence Dentice, General Manager and Sr. VP, Toshiba America Medical Systems
Kevin Abbott, Sr. VP, CFO and Treasurer,
Toshiba America Medical Systems
Girish T. Hagan, VP, Marketing
Aaron Hudy, VP, Sales
NO. OF EMPLOYEES: 198,000 (total)
GLOBAL HEADQUARTERS: Tokyo, Japan
Several years ago, executives at Toshiba Corp. began looking for a way to better convey the company’s core values, identity and management style to stakeholders and the general public. After much soul-searching, they decided to go with a simple, but effective phrase: Toshiba Leading Innovation.
“Toshiba adopted its corporate brand tagline to clearly demonstrate the value that we promise to our customers and society, and to emphasize that through continuous innovation in all areas of its business activities, Toshiba is determined to attain sustained growth with high profit,” executives said in the company’s 2007 annual report.
The effects of Toshiba’s rebranded tagline on the general public have been difficult to gauge. Its influence on the company’s bottom line, however, has been easier to quantify. After introducing the rebranded tagline during fiscal 2006, net sales at the Japanese electronics giant rose considerably, going from $60.3 billion in fiscal 2006 to $76.6 billion in fiscal 2007. Net sales in the company’s Medical Systems business jumped 26 percent during that same period, going from $3.1 billion in fiscal 2006 to $3.9 billion in fiscal 2007, ended March 31, 2008. Operating income for the Medical Systems business increased 23.7 percent in fiscal 2007 to $305,470.
Both net sales and operating income in Toshiba’s Medical Systems business fell in fiscal 2008, as deteriorating economic conditions slowed demand for diagnostic imaging systems among hospital customers. Net sales slid 6 percent to $3.68 billion, while operating income dropped to $244,690, according to the company’s fiscal 2008 earnings release.
Though the sales figures and operating income in the Medical Systems business tell a different story, Toshiba executives said the Japanese and U.S. markets for diagnostic imaging systems shrank by 15 percent in fiscal 2007 as “administrative initiatives to control medical costs cooled markets in advanced countries.” The contraction, however, was slightly offset by expanding markets in Asia, the Middle East and Latin America.
Toshiba took advantage of the opportunities in those markets by promoting sales of the Aqulion 64, a 64-slice CT scanner equipped with 64 detector channels, 3-D cone beam algorithms and volume reconstruction. The Quantum detector enables the Aquilion CT scanner to acquire 64 simultaneous slices of 0.5 mm with each 400-millisecond gantry revolution.
The company promoted other items as well, including an automated X-ray system that helps reduce procedure time; a medical resonance system that provides doctors with faster, more accurate scans; and an X-ray system that provides for head-to-toe and fingertip-to-fingertip coverage without having to pan or pivot the X-ray table.
One of the largest product launches of fiscal 2007 turned out to be the Aquilion ONE, an advanced diagnostic imaging system that provides doctors with a three-dimensional depiction of any body organ as well as the blood flow and function of that organ. The Aquilion ONE can scan one organ—including the heart and brain—in one rotation, as it covers up to 16 cm of anatomy using 320 ultra high resolution 0.5 mm detector elements. Since its launch in November 2007, the Aquilion ONE system has been installed in hospitals and imaging centers throughout the United States and Puerto Rico. The product even received the endorsement of the U.S. Department of Health and Human Services, as the National Institutes of Health installed the system in its facilities.
Toshiba’s Medical Systems business is grouped within the company’s Social Infrastructure segment, one of four business units within the firm. The Social Infrastructure segment, which includes the Medical Systems and Power Systems & Industrial Systems divisions, is one of the top revenue generators for the company. In fiscal 2007, the division reported $24.3 billion in net sales, a 39.6 percent increase compared with the $17.4 billion in sales the division posted in fiscal 2006. Sales were flat in fiscal 2008—the segment generated $24.4 billion, according to the latest earnings report.
Toshiba’s most lucrative segment ($25.1 billion in fiscal 2008 sales) is Digital Products, which includes the personal computers division. The company’s Electronic Devices segment includes Semiconductor Business and LCD Business divisions, which helped generate $13.5 billion in sales during fiscal 2008. The Home Appliances segment does not contain any business divisions but serves as a “housing” unit for such companies as Toshiba Lighting & Technology Corporation, Toshiba Home Appliance Corporation, and Toshiba Consumer Electronics Holdings.