Sharp Widens Forecast To $4.7B Loss

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Osaka, Japan -


Tuesday widened its forecast for a record loss to $4.7 billion for the fiscal year, ended March 31.

The net loss, which would be the worst in the company's history, is projected to be 31 percent higher than a forecasted loss of $3.5 billion made in February after previously forecasting the period to be profitable.

Sharp recently announced that it would sell a portion of its LCD panel business to Foxconn Technology Group and founder Terry Gou for a $1.6 billion.

Most Japanese manufacturers are now forecasting major losses for the previous fiscal year as a stronger yen saps the value overseas sales.

Sharp predicted in February a loss as prices for Aquos TVs continued to by eroded by the economy and aggressive Asian competitors and a pending tax charge.

Sharp booked charges as it cut deferred tax assets by $1.48 billion in the quarter, ended Dec. 31.

In April, Sharp reduced production of TV panels at its two biggest LCD plants and announced

plans to sell a 10 percent stake to Foxconn Technology's

Taipei-based flagship company Hon Hai Precision Industry.


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