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Sharp posts $400m loss with job cuts coming up

But touts higher LCD sales
Fri Feb 01 2013, 14:04
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JAPANESE DISPLAY MAKER Sharp is starting to see its drastic cost cutting measures pay off as it posted a $400m loss for the fourth quarter of 2012.

Sharp was in serious trouble during 2012, with the firm taking the drastic action of saying that it might not survive and selling a small stake of the company to Qualcomm. It announced sales of $7.4bn and a $400m loss for the quarter ending 31 December 2012, significantly less than the $1.8bn quarterly loss it reported a year ago.

Aside from selling a stake to Qualcomm, Sharp announced that its LCD business grew by 40 percent, mainly in the small to medium-sized LCDs used in smartphones and tablets. Sharp is known to be one of a number of LCD screen suppliers to Apple, and it predicts that its IGZO display technology is what will save the firm.

Sharp along with its Japanese rivals Sony and Panasonic have been suffering as investments in manufacturing plants made during the television boom a decade ago abruptly stopped paying off as supply began to outweigh demand. The firm is in talks about selling one of its television manufacturing plants to Lenovo and another to Wistron.

Sharp is still cutting costs and is expected to lay off 3,000 employs during this quarter.

The company also hasn't denied reports that Hon Hai, better known as Foxconn, will take a share of the firm or that Intel is interested in the firm. µ

 

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