“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.”
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MacDailyNews Take: The saga continues.
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