Sharp Corporation of Japan reported an operating loss of 94.1 billion Yen ($1.2 billion), and a net loss of 138.4 billion Yen for its latest quarter. Net sales were 458.6 billion Yen, down 28.4 percent compared to the same period last year.
It also revised its projections for the entire fiscal year downward, and is now projecting net sales of 2,500.0 billion Yen, an operating loss of 100.0 billion yen and a net loss of 250.0 billion yen.
The company also plans to reduce its workforce – the first time it’s done in 60 years, according to a Reuters news story, which reports that Sharp will lay off about 5,000 employees, or about 10 percent of its workforce. In a press conference in Toyko, Sharp President Takashi Okuda said “We are in a really tough situation. We will restructure and speed up our decision-making.”
Sharp recorded restructuring charges of 14.2 billion Yen for the quarter, including expenses associated with deployment of IGZO technology at its LCD plant, as well as a settlement package of 15.8 billion Yen to resolve anti-cartel lawsuits related to its TFT LCD business.
Both the Audio-Visual and Communication Equipment, and LCD groups suffered significant sales and operating income declines. Sharp says the deterioration in its sales and operating income for the whole company can be attributed almost entirely to these two groups.
Sales for the Information Equipment group, which includes copiers, were 64.7 billion yen, down 2.1 percent, compared to the same period last year, which Sharp attributes to lack of corporate investment due to economic uncertainty. Operating income for this group was 2.3 billion Yen, down 60.0 percent, due mainly to a deterioration in profits from selling products manufactured in the previous year.