Sharp Reports Net Loss of $274 Million; MFP Sales Steady; Will Exit TV Business in Americas
On July 31st, Sharp Corporation of Osaka, Japan, reported a net loss of 33.98 billion yen ($274 million) for its first fiscal quarter (the April to June 2015 period), versus 1.79 billion yen for the same period last year. The company also reported it will exit the television business in North and South America (see below).
Sharp did, however, meet its target of 80 billion yen in operating profit, but net sales for the first quarter down 0.2 percent.
In this latest quarter, Sharp said it was hit by sales declines in its electronics business, including lower demand for LCD televisions, smartphones, air purifiers, and small and mid-size smartphone displays.
Net sales for Sharp’s Business Solutions group, which includes copier/MFPs, for the first quarter were some 80 billion yen, up 0.8 percent versus net sales 79 billion for the group a year ago. Sharp attributes the gain to an expansion of color MFP sales overseas, and says it will “strengthen the office-solutions business around a nucleus of large-size displays, MFPs, and tablets.” For its entire fiscal year ending March 2016, it’s projecting sales of the Business Group to be up 1.9 percent.
Hisene Group to Purchase Sharp TV
Sharp will also exit its TV business in the Americas, and has agreed to license its brand name to Chinese multinational-corporation Hisense. Sharp has sold its television factory in Mexico to Hisense for 23.7 million, with Hisense obtaining the rights to use the Sharp brand name and all its channel resources in North and South America.
Hisense markets televisions, set-top boxes, digital-TV broadcasting equipment, laptops, mobile phones, wireless modules, wireless PC cards, and optical components for the telecommunications- and data-communications industries. It says it had overseas sale revenue of $2.6 billion in 2014.
While Sharp is exiting TVs in the Americas, it will remain in other product categories: “Sharp Electronics will continue to grow and invest in its line of consumer home appliances,” said a company spokesperson. “Also unchanged is the sales and marketing through authorized distributors of Sharp’s entire B2B product portfolio, including displays.”
- May 2015: Sharp Said to be Seeking Financial Assistance from Government-Backed Fund
- May 2015: Banks to Provide Sharp with $1.7 Billion Bailout, Layoffs in the Works, Reports Loss for Fiscal Year
- March 2015: Sharp to Cut Some 6,000 Jobs from Global Workforce as Part of Restructuring
- February 2015: Sharp Falters with Latest Financial Results, but MFP Business Sees Gains
- January 2014: 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
- May 2014: Sharp Returns to Profitability After Two Years of Losses
- February 2014: Strong Third Quarter for Sharp; Raises Net Sales Forecast for Full Year
- September 2013: Sharp Corporation Reports Substantial Loss for Fiscal Year; MFP Business Relatively Even