Sharp to fall into red ink in FY 2008

OSAKA, Jan. 31 Kyodo -
Sharp Corp. is likely to report a consolidated net loss for the 2008 business
year ending in March, contrary to its initial forecast of a 60 billion yen
profit in October, industry sources said Saturday.
The expected reversal is attributed in part to declines in share prices of
companies such as Pioneer Corp., with which Sharp has formed a business
alliance and obtained a stake, as well as the yen's appreciation and price
declines in liquid crystal display panels, the sources said.
In December, the Osaka-based consumer electronics maker booked some 43 billion
yen in appraisal losses, after drops in share prices.
Sharp was expected to make a major downward revision in the current business
year because it had been ordered by Japan's Fair Trade Commission in late
December to pay a fine of 261.07 million yen for fixing prices with Hitachi
Displays Ltd. on liquid crystal display modules used in Nintendo Co.'s game
consoles.
With demand for liquid crystal panels on the wane, Sharp has already decided to
postpone establishing a planned joint venture with Sony Corp. by about one year
to March next year.
The grim forecast comes on the heels of similar earnings projections by other
Japanese electronics giants such as Hitachi Ltd. and Panasonic Corp.
On Friday, Hitachi said it expected to incur its worst-ever group net loss of
700 billion yen for fiscal 2008. Osaka-based Panasonic, meanwhile, is likely to
report a consolidated net loss for fiscal 2008 for the first time in six years.
==Kyodo
2009-01-31 22:14:54