Sharp, has posted a loss of $196 Million, this is 1 billion less than what Sony who is set to use Sharp to manufacture display panels for their Bravia LCD TV’s reported on Friday.
The net loss compared with a profit of $260 million a year earlier. Contributing to Sharp’s losses is declining market share, falling prices and a strong yen. In Australia Sharp is giving away a Microsoft XBox 360, with a Halo 3 game, this has led to increased sales of their LCD TV’s in the Australian market.
In a statement issued on Friday Sharp said that prices of large LCD panels may fall 10 percent in the quarter ending December. First-half operating profit, or sales minus the cost of goods sold and administrative expenses, tumbled 97 percent to 1.6 billion yen while revenue slid 18 percent to 1.29 trillion yen, Sharp said.
The yen strengthened 7.4 percent against the dollar in the three months ended Sept. 30, reducing the value of Sharp’s overseas sales when converted into Japanese currency.
Profit at the electronic-components unit including LCD panels, tumbled to 183 million yen in the six months from 32.6 billion yen a year earlier with a 28 percent decline in revenue.