Sharp slashes FY outlook after Q1 loss

News General Japan 2 AUG 2012
Sharp slashes FY outlook after Q1 loss
Sharp has lowered its outlook and said it will not pay a dividend this year as restructuring costs push the company deeper in the red. In the fiscal first quarter to June, sales fell 28.4 percent to JPY 448.6 billion, hurt by lower LCD TV sales and prices in Asia, delayed orders for smaller LCD panels and lower production of large LCD panels. The operating result moved to a loss of JPY 94.1 billion from a profit of JPY 3.5 billion a year ago, and the net loss widened to JPY 138.4 billion from JPY 49.3 billion. The result included JPY 14.7 billion in charges for restructuring its LCD business and organisation in Europe, measures expected to lead to around 5,000 job losses. With the economic environment expected to remain difficult, the company cut its annual sales forecast to JPY 2.5 trillion. It now expects an operating loss of JPY 100 billion and net loss of JPY 250 billion for the year to March 2013. Sharp said it aims to restore profitability as soon as possible, helped by its recent production agreement with Hon Hai Precision Industry.

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