Sharp expects greater loss than previously forecast
updated 08:45 pm EDT, Thu November 1, 2012
Profit expected in last two years of its fiscal year
Struggling electronics manufacturer Sharp Corporation increased its full-year loss forecast to 155 billion yen ($1.94 billion) from a previous estimate of 100 billion yen. Unexpectedly, and also mentioned in the update, Sharp claims to be able to post an operating profit in the current second half of its fiscal year.
To stay afloat, Sharp has obtained loans from Mitsubishi Financial Group and Mizuho Financial Group in return for assurances that the manufacturer will cut 10,000 jobs, sell some assembly plants, and eventually return to a regular profit. Sharp has also mortgaged most of its Japanese offices and factories including one that manufactures displays for Apple's iPhone and iPad.
Since the beginning of the calendar year, Sharp's stock has shed more than 75 percent of its value. The Nikkei average has climbed five percent in the same time. The possibility of increased business from Apple, with Sharp providing displays for the iPad mini and iPad devices or possibly new future products, could be a reason why the company predicts a return to profitability.
