Apple display supplier Sharp warns on ability to stay afloat after $1.9 billion loss

“Sharp, a century-old stalwart of corporate Japan, has unveiled an annual loss of $1.9bn and warned of ‘material uncertainty’ about its ability to stay in business, less than three years after facing a similar crisis of survival,” Kana Inagaki reports for The Financial Times. “Undeterred, banks are once again pumping money into Sharp, a process analysts have criticised as hindering underperforming companies from implementing bold turnround steps.”

“The maker of display screens for Apple on Thursday reported a net loss of Y222.35bn ($1.9bn) for the financial year that ended in March,” Inagaki reports. “That compares with a profit the previous year of Y11.6bn and an earlier target of a Y30bn loss.”

“‘There exist events or conditions that may cast a material uncertainty about Sharp’s ability to continue as a going concern,’ it said in its earnings statement,” Inagaki reports. “The turnround plan that Sharp unveiled on Thursday resembled its previous restructuring measures: axing 10 per cent of its global workforce, including 3,500 jobs in Japan, and the sale of its head office in the west of the country.”

Read more in the full article here.

MacDailyNews Take: The saga continues.

Related articles:
Apple iPhone display supplier Sharp boosts operating profit – August 1, 2014
Sharp dedicates entire LCD plant to Apple – June 30, 2014
Hon Hai in no hurry to finalize Sharp deal – June 26, 2013
Sharp to replace chairman, president after losses – May 14, 2013


    1. Obviously, parts of the company make plenty of money. But it may require bankruptcy (or Japanese equivalent) to cast off the dying divisions and legacy costs. I’d make the attempt at casting off the profitable divisions then letting the rest die as ‘Sharp’, the late company.

  1. In other news, a janitor cleaning behind a file cabinet at Apple HQ discovers $1.9 billion amongst several dust bunnies. “It must’ve slipped behind there somehow, and nobody noticed it. I cleaned real good back there, but I think they just threw the cash away because it was too dusty.”

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