Sharp records ‘extraordinary loss’ of $1.4 billion
updated 03:00 pm EDT, Thu April 26, 2012
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Sharp has posted (pdf) what it is referring to as an ‘extraordinary loss’ largely due to LCD business restructuring. Sharp expects that the costs incurred in converting its production lines for large screen Aquos LCD TVs will be recouped by focusing more closely on mobile displays and developing new-generation IGZO displays. It now joins compatriots Sony and Panasonic in suffering heavy losses due to the highly competitive nature of the LCD TV and display market.
Speaking to Reuters, Mitsuo Shimizu of Cosmo Securities believes that the outlook for Sharp is bleak. ‘The outlook is very tough. It does beg the larger question over its future as a whole,’ said Shimizu. ‘I'm sure they have the world's best technology, but if no one wants to buy them, there's no point,’ he added.
While agreeing that multiple factors including the slow down in the world’s economies and the competition from Korea’s Samsung and LG has made things very tough for Sharp, it believes it can eke out a profit over the coming fiscal year. It projects that its LCD TV losses can be offset through increased sales of its domestic appliances and printers. It has forecast what may still be an optimistic operating profit of $248 million for the fiscal year ending March 31, 2013.
