Sharp forecasts FY net loss, cuts dividend

Sharp cut its forecast for results in the fiscal year to March, now forecasting a net loss due to tax reforms in Japan and the weak economic climate. The company expects a loss of JPY 290 billion for the year, versus an estimate in late October for a profit of JPY 6 billion. The revenue outlook was cut to JPY 2.55 trillion from JPY 2.80 trillion, and the company expects a breakeven operating result versus an earlier estimate of a positive JPY 85 billion. Sharp will cut its final dividend to JPY 5 per share from JPY 7 a year ago. The company said it was suffering from price declines in LCD TVs and solar cells, as well as the stronger yen and supply-chain disruptions from the flooding in Thailand. For the first nine months of the year, sales fell 18.3 percent to JPY 1.90 trillion, operating profit was down 86.3 percent to JPY 9.14 billion, and the net result moved to a loss of JPY 213.5 billion from a profit of JPY 21.8 billion.