Toshiba will undertake a fundamental restructuring of Toshiba’s Visual Products business by ceasing TV development and sales operations in North America and licensing the North American TV business to Taiwan’s Compal Electronics, Inc.

The new business structure will start to deliver products to the North American market in March 2015. Compal will handle everything from development through manufacturing and sales of the brand, paying licensing fees to the Tokyo-based company.

Toshiba also intends to transform its consumer TV business in regions other than Japan, replacing own development and sales with a brand licensing structure. The company plans to complete the new scheme and conclude negotiations with candidates is April this year. However, the company will continue to develop and sell TVs in Japan, where it is seeing demand for high-value-added products such as 4K sets.

Toshiba did not showcase any new TV at CES 2015 earlier this month, signaling its decision to exit the TV business. The company tried to respond to shifts in the North American TV market with value-added products, including large screen and Smart TV with Cloud Portal, and also took steps to cut costs and boost profitability by reducing platforms and reducing the employee headcount. However, as the growth of global market is slowing down, and continues to see harsh price competition, Toshiba has decided to build a new business structure.

Toshiba's TV business has been in the red the past few years due to competition from low-priced models overseas. Its sales fell 15% year over year to 154.2 billion yen ($1.3 billion) in the April-December period, with foreign sales making up 75% of that.

For the first nine months (April-December) of FY2014, Toshiba Group’s net sales increased by 184.2 billion yen to 4,716.2 billion yen (US$ 38,977.0 million), reflecting a significant sales increase in the Energy & Infrastructure segment (Nuclear Power Systems, Thermal & Hydro Power Systems and Railway Systems businesses) and higher sales in the Community Solutions (Elevator and Building Systems and Commercial Air-Conditioners businesses), Healthcare Systems & Services and Electronic Devices & Component segments (memory and storage businesses).

Consolidated operating income increased by 9.6 billion yen to 164.8 billion yen (US$1,362.1 million), the highest ever recorded for a nine-month period, despite a restructuring expense of 46.0 billion yen recorded by the PC business.

The Electronic Devices & Components segment recorded the highest- ever operating income for a nine-month period, the Energy & Infrastructure segment recorded significantly higher operating income, and the Community Solutions segment also saw an increase in operating income.

Income (loss) from continuing operations before income taxes and noncontrolling interests increased by 41.5 billion yen to 134.9 billion yen (US$1,114.9million), reflecting non-operating income from settlement of a lawsuit and a lighter asset management.

By overhauling the TV business, Toshiba targets a group operating profit of 450 billion yen in fiscal 2016, up from a projected 330 billion yen in fiscal 2014.