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Sharp, dulled by losses, running out of options

Sharp-Hon Hai deal?
11/1/2012 05:15 PM EDT
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krisi
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re: Sharp, dulled by losses, running out of options
krisi   11/1/2012 5:30:19 PM
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Revenue drops only 4% but the losses grew to $3B a quarter???

junko.yoshida
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re: Sharp, dulled by losses, running out of options
junko.yoshida   11/1/2012 5:50:08 PM
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It is due to a number of write-offs the company had to make. In the first half of the current fiscal year alone (April to September, 2012), Sharp said it made a net loss of 387.5 billion yen as a result of rising restructuring costs and falling demand for LCD televisions. It booked 84.4 billion yen of extraordinary charges as it wrote off the value of surplus display inventory and pulled out of solar panel manufacturing. It also wrote off 61 billion yen of so-called deferred tax assets – corporate-tax credits it could redeem if it returned to profit. But that's a prospect that doesn't look good for now.

krisi
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re: Sharp, dulled by losses, running out of options
krisi   11/1/2012 5:56:46 PM
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thank you Junko, that makes sense, it was not an operational loss...still their prospects look bleak

SylvieBarak
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re: Sharp, dulled by losses, running out of options
SylvieBarak   11/1/2012 7:37:52 PM
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Maybe the firm needs to just focus in on just a few of its more profitable business units and sell of the rest. That way it could stay independent, and run leaner and meaner. Easy to say, tough to do, I know... but it's not like the company doesn't have a choice.

krisi
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re: Sharp, dulled by losses, running out of options
krisi   11/1/2012 7:51:36 PM
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I agree Sylvie... but it is hard to do in Japan, much easier would be in US

junko.yoshida
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re: Sharp, dulled by losses, running out of options
junko.yoshida   11/1/2012 10:12:15 PM
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If Sharp gets rid of its LCD operation, there is really nothing left. It's got solar, but that's tanking -- everywhere in the world. Presumably, Sharp could focus on small-screen LCDs for mobile. But then, again, that's a very competitive market. The fact that it makes harder for a Japanese company to make a huge change, as discussed in the thread here, is the following. Japanese companies, in general, are not in the habit of ruthlessly cutting employees at the first sign of decline in any given quarter. They won't act fast. But to their credit, Japanese companies are much more paternalistic. They see themselves socially responsible for taking care of their employees.

krisi
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re: Sharp, dulled by losses, running out of options
krisi   11/1/2012 10:15:06 PM
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Being socially responsible is actually making lots of sense for me...we tend to dump engineers in North America at every sign of biz weakness...good for companies, perhaps, not so good for the society at large...kris

junko.yoshida
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re: Sharp, dulled by losses, running out of options
junko.yoshida   11/1/2012 10:29:03 PM
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I agree, Kris. I feel ambivalent every time when I report on quarterly results. But those are the early warning signs no companies should take it lightly, and they should come up with a strategy -- quickly. If Sharp runs themselves into ground, then, there will be no Sharp and no place to work!

MikeSantarini
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re: Sharp, dulled by losses, running out of options
MikeSantarini   11/2/2012 5:56:30 PM
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Nice headline

KokSum
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re: Sharp, dulled by losses, running out of options
KokSum   11/12/2012 7:53:58 AM
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I wonder what happened to the Sharp's deal of LCDs for iPhone?

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