Sharp Posts Loss Apr 29, 2009

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Sharp Corp. posted an annual net loss of 125.8 billion yen (approx. US$1.3 billion). Revenue for the fiscal year ended March fell to $29.5 billion.

Sharp said the business environment for the current fiscal year that began April would remain uncertain, and projected a net profit of 3 billion yen ($31.0 million) on revenues of 2.76 trillion yen ($28.4 billion).

Sharp said it was struck by a bigger-than-anticipated loss "because of faltering consumption, harsh price competition and inventory cutbacks."

Sales of televisions and other audio visual equipment, as well as mobile phones, declined due to the strong yen as well as price cuts amid intensifying competition, it said. Sales of other electronics devices declined nearly 30% from a year earlier.

Sharp has said it would cut 1500 contract workers in Japan by the end of March, while its directors will forgo bonus pay in June and accept pay cuts of up to 50%. It also has reduced panel production for mobile phones in response to the slowdown.

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