Sharp to see bigger-than-expected loss of 350 bil. yen for FY 2011
(Japan Economic Newswire Via Acquire Media NewsEdge) OSAKA, April 10 -- (Kyodo) _ Sharp Corp. is expecting to post a larger-than-forecast group net loss of 350 billion yen for the business year that ended March 31, sources familiar with the matter said Tuesday.
The Osaka-based electronics company projected last month a group net loss of 290 billion yen, but the loss has widened as prices of liquid crystal display panel televisions fell more than expected while its solar battery business was sluggish.
Sharp's mainline LCD business has been battered by such factors as a global oversupply of LCD panels, forcing the operating rate of its large LCD manufacturing plant in Sakai, Osaka Prefecture, to fall to around 50 percent.
On the domestic front, the profitability of Sharp's LCD TV business is likely to have deteriorated further as demand for LCD TVs weakened following the transition to digital terrestrial broadcasting last year.
Sharp initially expected to book a full-year group net profit of 6 billion yen, but revised the projection downward on Feb. 1, announcing that it expected to post its largest-ever net loss of 290 billion yen.
Last month, the company announced it will form a capital and business alliance with Taiwan's Hon Hai Precision Industry Co. and supply its LCD panels to Hon Hai, the world's biggest contract supplier of electronics products also known for its Foxconn brand.
Though the procurement is scheduled to start from October, it is unlikely to raise the operating rate of the Sakai plant for the time being.
(c) 2012 Kyodo News International, Inc.
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