Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Sharp Widens Annual Net Loss Forecast To $4.7 Bln

Sharp Corp. (SHCAY.PK) on Tuesday widened its annual loss forecast which would be the biggest annual loss in its 99-year history. The Japanese TV maker now expects a net loss of 380 billion yen or about $4.7 billion for the fiscal year.

The company revised the view following delays in shipments of liquid crystal displays, slumping television sales, currency weaknesses, as well as higher restructuring expenses. This is the third downward revision for the year ended March 31.

The company's February forecast of 290 billion yen loss was reversed from earlier forecast for a profit of 6 billion yen, on declining prices for its Aquos televisions, an economic slowdown and a tax charge. Loss per share is now projected to be 345.35 yen, compared to prior estimate of loss of 263.56 yen per share.

Revenue for the year is now expected to be 2.45 trillion yen, lower than previous forecast of 2.55 trillion yen. Operating loss would be 40 billion yen for the year, compared to a breakeven forecast earlier.

Sharp plans to release its earnings for the fiscal year on April 27. The company is looking for a hefty investment from Taiwan's Foxconn Technology Group, the assembler of Apple Inc. (AAPL) iPads, and its founder Terry Gou.

Earlier in the day, Sharp's domestic rival Sony Corp. (SNE: Quote) more than doubled its annual net loss forecast to 520 billion yen or about $6.41 billion as it takes a tax charge. The Japanese consumer electronics and entertainment firm, which is going through the worst phase in its history, however, expects to return to positive operating results in the next year on foreign exchange impact.

The electronic giants are loosing their markets to foreign rivals such as Samsung Electronics Co. and LG Electronics Inc., with the effects of a strengthening yen and a stuttering global economy impacting its results. Both Sharp and Sony recently replaced their respective top executives aiming to boost turnaround efforts.

In Japan, Sharp shares closed Today's trading at 530 yen, down 24 yen or 4.3 percent.

Register
To receive FREE breaking news email alerts for Sharp Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving modestly higher in morning trading, stocks showed a substantial move to the downside over the course of the trading day on Wednesday. The major averages pulled back well off their highs for the session, sliding firmly into negative territory. Ebola "czar" Ron Kain is scheduled to meet with President Barack Obama on Wednesday as he begins his efforts to coordinate the government's response to the deadly disease. Klain, who previously served as chief of staff to Vice President Joe Biden and then-Vice President Al Gore, was named as Ebola Response Coordinator last Friday. Potentially complicating the outlook for control of the Senate, the results of a SurveyUSA poll conducted for WXIA-TV in Atlanta suggest that the Georgia Senate race between Republican David Perdue and Democrat Michelle Nunn could be headed for a runoff.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.