Sharp Reports $5.37 Billion In Losses
Sharp announced their financials on Tuesday, which was the company’s largest annual net loss in their one hundred year history. The company’s losses totaled around ¥545 billion ($5.37 billion) in the year ending March 31st. Sharp promoted former EVP of products Kozo Takahashi to president of the company. Takahashi is replacing Takashi Okuda. Okuda will become chairman of the company after approval by shareholders.
Sharp continues to struggle due to high domestic production costs, foreign competition, and lower demand for flatscreen LCD TVs. Sharp has been forced to take on over $3.5 billion in debt between 2011 and 2012 so the company laid off around 10,000 employees and sold overseas assets, such as facilities in Mexico, China, and Malaysia.
Samsung invested 10.4 billion yen ($111.6 million) for a 3% stake in Sharp to gain access to Sharp’s LCD display supply. Sharp used the cash to expand and improve their TV and smartphone panel production.
Sharp is optimistic about their future and is hoping to bounce back to operating profit in the next fiscal year. There is an initial forecast of ¥80 billion ($786 million).