NEC Electronics CEO ousted after losses mount

Toshio Nakajima has been named chief executive of NEC Electronics amidst financial losses at the Japanese PC and network equipment maker, the company said on Wednesday.

Toshio Nakajima

Nakajima, 58, replaces Kaoru Tosaka, 65, who was the first president of the company after it separated as a subsidiary from parent conglomerate NEC in November 2002.

The change, which takes effect November 1, was approved by NEC's board of directors during their meeting this week.

Nakajima, a 35-year NEC veteran who presently serves as executive vice president and a boardmember, concurrently spearheaded NEC Electronics America as president and CEO last year. In March, Nakajima returned to NEC Electronics in Japan to serve as a corporate officer overseeing the company's large-scale-integration business development.

Nakajima takes on a company whose sales are dropping due to weaker than expected mobile-phone sales and lessened emphasis on its semiconductor business.

Kaoru Tosaka

NEC earnings in its most recent quarter sank 1.2 percent to $10.6 billion from $10.8 billion in the same period a year ago.

Overall, NEC's profit for the first half of the year dropped 35 percent to $142 million from $218 million, while sales fell 3 percent to $19 billion from $19.9 billion in the same period a year ago.

Much of NEC's profit came from the sale of its associated companies and costs saved from consolidating resources, such as the re-launch of its Beijing NEC IC Design Company as NEC Electronics China, the company said.