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Sharp to stay in red after record loss

Reported by AAP
Friday, April 27, 2012
World's kookiest billionairesBillionaires and their eccentric and outlandish publicity stunts.

Japanese electronics giant Sharp says it will remain in the red over the next year after a record $US4.7 billion ($A4.55 billion) net loss up to March 2012 as global sales of its LCD televisions slumped.

The company expects to lose Y30 billion ($A358.14 million) over the coming 12 months, amid worries over high energy prices and the prolonged European debt crisis.

For the year to March 2012, Sharp confirmed it lost Y376 billion ($A4.49 billion) ($4.7 billion), in line with earlier projections but well off from the net profit of Y19.4 billion ($A231.60 million) yen it recorded in the previous year.

Sharp said it booked a special loss of Y117 billion ($A1.40 billion) in restructuring costs as it moved to upgrade production lines for high-end LCDs and to consolidate operations with Hon Hai Precision, the Taiwanese manufacturing giant that recently became Sharp's top shareholder.

Operating losses reached Y37.5 billion ($A447.68 million), compared with an operating profit of Y78.9 billion ($A941.92 million) in the year to March 2011. Sales plunged 18.7 per cent to Y2.45 trillion ($A29.25 billion).

Weak earnings, the company said, were the fault of slowing demand for LCD TVs, coupled with a global oversupply that had led to falling prices.

The current global market slump, particularly for LCD televisions, is so severe that Sharp expects to stay in the red for the ongoing fiscal year.

But Sharp hopes that increased efficiency and synergy with Hon Hai, better known for its Foxconn brand that makes gadgets for Apple, should help it return to operating profit of Y20 billion ($A238.76 million) in the year to March 2013.

Sales for the year to March 2013 are seen rising 9.9 per cent to Y2.7 trillion ($A32.23 billion).

23/10/2014 19:39Sydney, Australia. 23 October,2014
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