Report: Sharp To Post A Worse Than Forecasted Financial Report On May 14th

Posted May 5, 2013

Sources with Reuters have reported that Sharp Corporation (TYO:6753) is going to post a worse than forecasted financial picture with a 500 billion yen ($5.1 billion) net loss in the year that ended on March 31st.  Sharp is going to report their financial results on May 14th.

Sharp Corporation is reportedly having Mikio Katayama retire soon.  Sharp is also considering canceling plans to have him work as an advisor to the company, according to the Kyodo news agency.  This is part of plans to revive the business under the leadership of Takashi Okuda.  Sharp is going to reveal a new medium-term business managing plan later this month.  Shareholders are looking for a management structure that focuses on rebuilding with authority, concentrated by Okuda.

Sharp’s creditor banks Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ want Katayama to retire because his presence has caused uncertainty for the decision-making processes at the company.  Katayama reportedly has already told creditors of his intention to step down, according to Japanese news company Yomiuri.  Two other company advisors, Katsuhiko Machida and Haruo Tsuji, are also expected to retire.

Katayama was hired as Sharp’s president in 2007.  He was known for opening the company’s LCD factory in Sakai, Osaka Prefecture.  In 2012, he stepped down and became the chairman of the company with no representation rights due to poor performance of the company.  Last year, Katayama was instrumental in negotiating deals with rivals Qualcomm and Samsung.