Sharp hits loss for Q1 as AV and LCD demand slides.
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Net loss was 138.4 billion yen or (-A$1.65bn), while operating loss for the Japanese giant was 94.1 billion yen ($1.2bn), both “significant” declines on last year, Sharp admitted in a statement.
Sales of Sharp Audio-Visual and Communication equipment also fell a massive 55% to 134.1 billion yen, as did LCD TVs which fell almost 50% to 1.66 million sets, worth 77.7 billion yen.
“Taking into account the current situation as well as sales prospects for the future,” the electronics giant has downgraded its 2012 LCD sales forecast by almost 35% to 8.00 million sets, or 350.0 billion yen.
Although LCD TVs enjoyed “brisk” sales in emerging market, sales in China were sluggish, and the Japanese market was hit by a steep drop in demand.
Sharp anticipate the harsh market environment to continue, although projects demand in Japan to bottom out in the second half of fiscal 2012.
It has also announced it will cut staff numbers by 5000.
The Japanese giant pledged to achieve a turnaround from the dire performance experience of late, by expanding business in emerging markets where “significant” growth is expected.
Sharp, who supplies Retina screens to Apple for its iPad, will seek to expand orders for high-performance displays as a mass of devices on Windows 8 is expected to drive demand, and also cited synergy with Hon Hai Group for larger screens.
Sharp is projecting a net loss of 250.0 billion yen, net sales of 2,500.0 billion yen and an operating loss of 100.0 billion yen for full fiscal year 2012; a further downgrade from the forecast made in April.
Declines in Audio-Visual and Communication Equipment and LCDs were the primary factors behind the downward revisions.