Sharp has joined the Japanese mile high club by declaring that they have made a $1.1 billion dollar loss and are set to shed jobs. The loss does not bode well for Pioneer Electronics whose shares have crashed 83% during the past two months.
Sharp who are the largest shareholder in Pioneer with a 14.3 share in the struggling Company has said that they are still “uncertain as to what will happen to the Company who is set to launch a range of LCD TV’s in Australia this year.
According to Bloomberg Sharp’s net loss was caused by a fall in LCD-TV sales of 16 percent this year to $64 billion, the first drop in the industry’s history, according to researcher DisplaySearch.
The loss is Sharp’s first since the company was listed on the Tokyo Stock Exchange in 1956.
Sharp says that sales of LCD TVs will fall 10 percent this year despite a forecast increases of 21 percent to 10 million.
Blomberg said “The decline in LCD-TV prices was so steep that it pushed our business into the red, and was so sharp that our cost-cutting efforts couldn’t keep pace,” Tetsuo Onishi, a Sharp director in charge of finance and accounting, told reporters in Tokyo.
