Sharp Reports Wider Loss, To Cut 5K Jobs
By Steve Smith On Aug 2 2012 - 1:43pm
Osaka, Japan -
Sharp Electronics reported a wider net loss in its fiscal first quarter and
announced a plan to lay off 5,000 employees by next spring.
Sharp reported a
net loss of 138.4 billion yen ($1.8 billion) in its first quarter compared with
the prior year's 49.3 billion yen loss.
Net sales were
458.6 billion yen, 182 billion yen lower than last year's fiscal first quarter.
Sharp said that it
will cut 5,000 jobs worldwide by March 2013, reorganize its business groups,
review operations at its Tochigi and Katsuragi plants, and "streamline" its
headquarters in attempts to cut costs and return to profitability.
efforts, Sharp is relying on to turn its fortunes around is running the Sakai
Display Products Corporation with the Hon Hai Group, which made a 10 percent
investment in Sharp this spring.
In addition Sharp
said it is pushing ahead developing its own proprietary technologies including
Plasmacluster Ion technology and devices such as Igzo LCDs "using new
materials, allowing us to create new markets in such areas as medical care and
education," the company said.
As for the
quarter's performance by category, in its consumer/information products segment,
sales were down 277 billion yen, or 36.8 percent.
In the segment's operating
groups, audio/visual and communications equipment sector sales were down 54.9
percent to 134.1 billion yen due to much lower LCD TV demand in Japan and a
price drop, which offset higher sales overseas.
In its health and
environmental equipment sector, sales were 78.2 billion yen, up 5.2 percent due
to higher sales of air conditioners and washing machines.
sector sales were 64.6 billion yen, down 2.3 percent from the prior year's