Sharp Says it Won’t Exit Solar-Cell Business
March 9, 2015 – Sharp Corporation of Japan issued a press release stating that, despite media reports, it won’t be exiting its solar-cell business.
As we reported last week, according to The Wall Street Journal, Sharp President Kozo Takahashi is reportedly seeking additional financial support from its two main lenders, less than three years after its last bailout.
Takahashi will present a turnaround plan to its lenders, Mitsubishi UFJ Financial Group and Mizuho Financial Group. These two lenders together hold more than ¥400 billion ($3.3 billion U.S.) in Sharp debt. According the The Wall Street Journal, the plan reportedly involved Sharp leaving businesses such as solar panels – however, this doesn’t appear to be the case.
While Sharp has made some financial gains in the last several years, on February 3, 2015, the firm reported a 7.2 billion yen loss for its nine months ending December 31, 2014. It’s now also forecasting a 30 billion yen net loss for its full fiscal year ending in March 2015, whereas previously it had forecast a small profit. Sharp said the net loss was due to recording taxes deferred from a prior period, as well as lower sales of LCD TVs, which were down 4.4 percent, and lower sales of Energy Solutions, which were down 29.0 percent, both versus the same period a year prior.
Sharp’s financial troubles have largely been from its LCD-displays business – LCD displays that are typically used in TVs, smartphones, and tablets – while it’s printer/MFP/copier business has generally remained profitable over the last several years.
- March 2015: SHARP PRESIDENT TO ASK FOR MORE FUNDS FROM LENDERS
- February 2015: SHARP FALTERS WITH LATEST FINANCIAL RESULTS, BUT MFP BUSINESS SEES GAINS
- January 2015: SHARP EXPECTS FINANCIAL RESULTS TO FALL SHORT OF FORECAST
- January 2015: SHARP SELLS U.S. HQ IN MAHWAH, BUT WILL LEASE SITE TO STAY THERE
- November 2014: SHARP REPORTS PROFITABLE FISCAL HALF-YEAR; FORECASTS HIGHER SALES FOR FULL YEAR
- August 2014: SHARP REPORTS SMALLER LOSS FOR QUARTER, ON TRACK FOR PROFIT FOR FULL YEAR
- February 2014: STRONG THIRD QUARTER FOR SHARP; RAISES NET SALES FORECAST FOR FULL YEAR
- November 2013: FIRST QUARTERLY PROFIT FOR SHARP JAPAN IN TWO YEARS, STRONG SALES OF COLOR MFPS
- September 2013: SHARP CORPORATION REPORTS SUBSTANTIAL LOSS FOR FISCAL YEAR; MFP BUSINESS RELATIVELY EVEN
- September 2013: SHARP CORPORATION MAY RELEASE NEW PUBLIC SHARES IN EFFORT TO PAY DOWN DEBT
- August 2013: SHARP CANCELS JOINT COPIER SALES COMPANY WITH SAMSUNG
- August 2013: SHARP REPORTS IMPROVING FINANCIAL PERFORMANCE FOR ITS FIRST QUARTER