• Dangerous games

    Employers' body Neasa is playing a potentially dangerous game, says Terry Bell.

  • Rational thinking

    All players should first consider the net result of their actions, says Leopold Scholtz.

  • Telkom's property poser

    BEE may be hindering Telkom's plans to offload redundant real estate, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Sharp projects $5.6bn annual loss

Nov 01 2012 14:40 AFP

Related Articles

Sharp loses over $1bn of value

Sharp mulls main businesses sale

Sharp may add 3 000 workers to job cuts

Sharp to axe 5 000 jobs, first since 1950

Panasonic shares plunge 20%

Panasonic forecasts 'mammoth' loss

 

Tokyo - Embattled Japanese electronics maker Sharp said on Thursday it would book a $5.6bn annual net loss in the wake of a huge restructuring, nearly double its earlier forecast.

Sharp has suffered deep losses in its television business with the maker of Aquos-brand electronics saying it would lose ¥450bn in the fiscal year to March, dwarfing its previous prediction of a ¥250bn shortfall.

Sharp also cut its sales forecast to ¥2.46 trillion from ¥2.50 trillion, while saying it lost ¥387.58bn in the first half of the current fiscal year to March, from a year-earlier loss of ¥39.82bn.

Like rivals Panasonic and Sony, Sharp has struggled in its television business amid falling prices and stiff competition from overseas rivals. Sharp was also struggling in its once-proud liquid crystal display (LCD) business.

"Our business environment continued to be severe, due to drastic price drops of products and devices, production delay of new small- and medium-size LCDs... and a worse-than-expected drop in sales of LCD TVs in Japan and China," the firm said.

"Sales of LCD TVs fell drastically... This was due mainly to decreased demand in Japan and a drop in sales in China caused by deteriorating Japan-China relations," it said in a statement.

Tokyo and Beijing have been embroiled in an increasingly hostile diplomatic spat over ownership of an East China Sea island chain with the row sparking a tumble in demand among Chinese consumers for Japan-branded exports.

Japanese manufacturers have also been pounded by the strong yen, which makes their products pricier overseas and shrinks the value of firms' repatriated foreign income.

Sharp is undergoing a painful restructuring in its efforts to return to profitability, promising thousands of job cuts while cutting wages for employees - from the factory floor to the executive boardroom - and selling real-estate to shore up its bleeding balance sheet.

sharp  |  panasonic  |  sony
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No need to keep up with the Joneses

Fin24 users provide their own personal tips on how to save money instead of trying to keep up with the Joneses.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...