Mar 28th - Sony’s Hirai Stakes Reputation on Restoring TVs to Profit

Sony Corp. (6758)’s incoming President Kazuo Hirai put himself in charge of the company’s unprofitable TV unit, staking his reputation on ending eight years of losses.

Sony, Japan’s biggest electronics exporter, abolished two divisions at its main electronics unit and promoted three executives, the company said in a statement yesterday. The changes, effective April 1 when Hirai takes over as chief executive officer, are aimed at speeding upmanagement decisions, said Satsuki Shinnaka, a spokeswoman.

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Kazuo Hirai, incoming president and chief executive officer of Sony Corp., left, and Howard Stringer, chairman, attend a news conference in Tokyo, Japan. Photographer: Tomohiro Ohsumi/Bloomberg

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Kazuo Hirai, incoming president and chief executive officer of Sony Corp. Photographer: Junko Kimura/Bloomberg

Hirai, 51, who’s been credited for making the PlayStation game business profitable, is bringing in a new team as he seeks to turn around the TV business that’s forecast to lose money for an eighth consecutive year. Hirai has vowed “painful” steps to cut costs and turn around a company facing a fourth straight annual loss amid consumers increasingly flocking to devices from Samsung Electronics Co. (005930) and Apple Inc. (AAPL)for movies and games.

“You can’t just expect any hero to show up and resolve Sony’s problems,” said Shiro Mikoshiba, an analyst at Nomura Holdings Inc. in Tokyo.

The Tokyo-based company’s shares gained 2.2 percent to 1,780 yen at the midday trading break in the city. The shares have jumped 29 percent this year, compared with a 23 percent rise for Suwon, South Korea-based Samsung and a 52 percent advance for Cupertino, California-based Apple.

Reshuffle

Sony named Shoji Nemoto, 55, to oversee the company’s technology strategy and its digital imaging and solution units. Kunimasa Suzuki, 51, will be in charge of product strategy, mobile phones and personal computers. Tomoyuki Suzuki, 57, was named to oversee Sony’s chip and device solution businesses.

The maker of Bravia TVs and Vaio computers is abolishing the consumer products and services group, which handled consumer electronics, and the professional device and solutions group, which handled business-use products and components. Sony is creating a medical business unit, to be run by Executive Deputy President Hiroshi Yoshioka, who oversaw the professional device and solutions group.

Hirai, who worked in Sony’s music and entertainment divisions, edged out three other candidates with engineering backgrounds for the top job at the company that was a trendsetter in the 1980s. Hirai will succeed Howard Stringer, 70, who will become chairman of the board after a shareholders meeting in June.

Top Job

Soon after he was named for the top job last month, Hirai reaffirmed his commitment to TVs. The world’s No. 3 maker has a sales target of 20 million sets for the year ending March 31, though the business may lose between 220 billion yen ($2.7 billion) and 230 billion yen.

Televisions are important as an output device, Hirai said last month. “Withdrawing or shrinking would cut a link for customers to experience” Sony content, he had said.

Hirai was born in Tokyo on Dec. 22, 1960. He grew up in Japan and the U.S., graduating from the International Christian University in Tokyo in 1984 with a bachelor’s degree in liberal arts.

After graduation, he joined a joint venture set up in Tokyo by Sony and CBS Inc. The business later became Sony Music Entertainment Inc., Sony’s main music unit.

TV Turnaround

Hirai has already taken action on turning around the TV business. Last year Sony exited a panel-making venture with Samsung. The sale of the stake in the venture to the South Korean company will save about 50 billion yen in cost at Sony’s TV operation.

“Hirai appears to be a person of action as he’s already shown his issue-solving ability in halting investments in the SLCD venture,” said Yuji Fujimori, Tokyo-based analyst at Barclays Plc, referring to the venture with Samsung.

The maker of Bravia TVs has lost ground to Samsung and LG Electronics Inc. (066570), both of which sell TVs profitably. Sony and fellow Japanese television makers Sharp Corp. andPanasonic Corp. (6752) have been crippled by the strengthening yen, which forced Sharp to predict a record 290 billion-yen loss this year.

Besides reforming the TV unit, Hirai needs to break down internal barriers and deliver new products that can win back consumers, Nomura’s Mikoshiba said.

“Sony still has silos. Each section is looking at a different direction and that’s why Sony is struggling to catch up with Apple and Samsung,” Mikoshiba said. “Hirai needs to bring Sony-like products that everyone would want to buy to revive the company.”

Source: http://www.bloomberg.com/news/2012-03-27/sony-s-incoming-president-hirai-to-run-home-entertainment-unit.html

Mar 27th - Dutch tidal energy supplier signs dealership agreement with Japanese

Tocardo International, the leading tidal energy supplier from the Netherlands, has made a significant step in commercialising its Tocardo Tidal Turbine Technology by signing a dealership contract for Japan with Spectol Power Design Co., Ltd. (SPD).

Tocardo is targeting Japan as a highly promising market for tidal and river energy generation and is delighted to link up with SPD as its preferred business partner there. Together, they will focus on turbine supply deals of 18 MW over the coming three years.
“We are thrilled to have entered into this agreement with SPD based on mutual trust and a shared vision of the potential of the Tocardo tidal technology,” says Hans van Breugel, CEO of Tocardo. “Tocardo is actively pursuing a network of dealers who can deliver on the Tocardo ambition as part of our long-term strategy. This dealership agreement is clear evidence of the viability of our business strategy and we expect to develop our alliance in line with both the market opportunities and our product offerings”.  

“Being fully convinced of the potential of the Tocardo technology, in both tidal as well as river applications, we are proud to start a close cooperation with Tocardo . It will allow us to offer our clients a renewable, economic and reliable energy source,” comments Nobuhisa Hayashi, President & CEO of SPD.

Tocardo already has a foothold in the Japanese market, having recently made its first commercial sale of a turbine to the country. The unit – which will serve as an important demonstrator of Tocardo’s technology – is due to be delivered in October this year. A world-first advantage for Tocardo is its ability to deliver fixed-price and off-the-shelf turbines, with just six months delivery time.

The Tocardo free-flow in-stream hydro turbines can be compared to “underwater wind turbines”: free-standing underwater units, generating energy from sea currents and tidal and river flows. TOCARDO’s has entered the renewable energy market with 100 and 200 kW turbines. This technology is proven over three years in hostile currents of 4.5 m/s. The company is also developing a 500 kW and 1 MW offshore turbine.

Mar 23rd - `Upsurge' of U.K. Companies Interested in Japan

Mar 9th -- David Warren, U.K. ambassador to Japan, talks about the outlook for the country's economic recovery after last year's March 11 disaster. Warren speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

http://www.bloomberg.com/video/88015242/

Mar 21st - Nissan reviving Datsun brand for emerging markets

Nissan is bringing back the Datsun three decades after shelving the brand that helped build its U.S. business. This time, Nissan hopes the name synonymous with affordable and reliable small cars will power its growth in emerging markets.

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AP Photo

Nissan Motor Co. Chief Executive Carlos Ghosn gestures during a press conference in Jakarta, Indonesia, Tuesday, March 20, 2012. Ghosn announced Tuesday that Nissan is bringing back the Datsun three decades after shelving the brand that helped build its U.S. business.

Read more here: http://www.sacbee.com/2012/03/20/4351329/nissan-reviving-datsun-brand-for.html#storylink=cpy

Nissan Motor Co. Chief Executive Carlos Ghosn made the announcement Tuesday while in Indonesia, one of three markets besides India and Russia, where the Datsun will go on sale from 2014.

Datsun debuted in Japan in 1932, and hit American showrooms more than 50 years ago.

It was discontinued globally starting in 1981 to unify the model lineup under the Nissan brand. Nissan also makes Infiniti luxury models.

Nissan has often toyed with the idea of reviving the Datsun brand because it is associated with value and reliability - selling points that Nissan and other Japanese automakers built their reputation in the American market.

Nissan said the Datsun name will help its profile in newer markets, where it is counting on solid growth in coming years.

Nissan expects its vehicle sales to nearly double in Indonesia by 2017 from last year.

Nissan plans to sell 60,000 vehicles in Indonesia for fiscal year ending in March 2012. Overall, about 890,000 vehicles are sold in Indonesia a year, making it an important southeast Asian market, according to Nissan.

Ghosn met with Indonesian President Susilo Bambang Yudhoyono and reiterated Nissan's commitment to the Indonesian market as a key production site.

"Nissan is bringing new jobs and new vehicles to Indonesia," he said.

Read more here: http://www.sacbee.com/2012/03/20/4351329/nissan-reviving-datsun-brand-for.html#storylink=cpy

Mar 21st - New Japanese owners for Great Yarmouth based Seajacks

Successful Great Yarmouth firm Seajacks which provides jack-up vessels for the offshore energy industry has been bought by two Japanese firms.


Seajacks Leviathan jack-up vessel which is going out to work at Sheringham Shoal windfarm because of weather delays

The deal - for an undisclosed sum - will see ownership of the company transfer from former BP chief executive Lord Browne’s Riverstone Holdings LLC to one of the largest Japanese trading companies Marubeni Coporation and government-backed private equity firm Innovation Network Corporation of Japan (INCJ).

Seajacks managing director Blair Ainslie said the deal would allow the company to expand its fleet of jack-up vessels.

He said: ““I am delighted that this transaction has been agreed. This is a logical step forward for Seajacks, and great news for our loyal staff and for our valued customers. With Marubeni and INCJ as our owners, we will be able to expand our fleet and consolidate our position as one of the leading turnkey offshore energy service companies in Europe. We expect to announce the commencement of construction of new vessels in the very near future to take advantage of the significant business opportunities we are seeing.”

Lord Browne said he was very proud of the fleet which the Seajacks management team has assembled and the value the company has created for its investors while meeting the needs of the fast‐moving offshore renewable energy industry in Europe.