Sharp Crashes + Burns Again As “Business Worsens”.
In Australia it’s copiers that is driving revenue with speculation that the Sharp Corporation could still pull out of the Australia market with all of their categories moved to a distributon model.
Last night Sharp Corporation cut its earnings outlook, citing a worsening performance from its smartphone display-panel business because of intensifying competition.
For its fiscal year ending in March, Sharp now expects operating profit of US $82.3 million, down from its previous forecast. Its revenue guidance dropped to ?2.7 trillion from ?2.8 trillion.
“Prices of display panels for smartphones have declined and our sales have slowed,” the company said.
The Japanese electronics maker has been implementing a range of restructuring measures, including job cuts, selling its headquarters building and pulling back from some overseas markets.
Display-panel manufacturing has been a core business for Sharp, which supplies, but the unit has lost customers to competitors offering lower prices.
Following its second bailout in three years from banks in May, Sharp Chief Executive Kozo Takahashi pledged to speed up overhaul efforts with a target of posting a profit of ?10 billion for the April-September quarter. On Monday, the company said it is now expecting to report a ?26 billion loss for the period.
Mr. Takahashi had acknowledged that Sharps fortunes are “worsening at a faster pace than we had expected.”
The company is set to report its fiscal second-quarter results on Friday, with analysts focusing on any updates on the panel business.
Sharp is in discussions with Japan Display and Hon Hai Precision Industry over possible investments in its smartphone panel business, according to people with knowledge of the matter. Sharp executives, including Mr. Takahashi, have said the firm won’t rule out any possibilities, including giving up majority control of the unit.