Feeds

Sharp bags partners for LCD biz, forecasts bigger loss for 2011

May be handing over control of loss-making display plant

  • alert
  • submit to reddit

Boost IT visibility and business value

Sharp has found two new partners to help with its LCD factory as it forecasts an annual loss of ¥380bn ($4.7bn, £2.97bn).

The company's new forecast for the fiscal year to the end of March is up from a previously expected loss of ¥290bn ($3.57bn, £2.25bn). The full results will be reported later this month.

"We have adjusted our consolidated earnings forecasts in connection with delayed shipments of LCDs used for mobile devices" and restructuring costs, Sharp said in a canned statement in Japanese, reported by AFP.

The Japanese firm also said that it had bagged two more investors for its LCD business – Toppan Printing and Dai Nippon Printing.

Sharp recently got Hon Hai Precision, owners of Foxconn, to sink ¥66bn for a 46.5 per cent stake in its telly business, which is a joint venture with Sony. Hon Hai also handed over ¥66.9bn for a 9.9 per cent stake in Sharp itself.

Today, the company announced that Toppan and Dai Nippon would also be joining the venture, called Sharp Display Products, but didn't say how much cash the pair would be parting with or how large their stakes would be.

"The method of the business integration will be determined upon consultation among the parties to this business integration," Sharp said in another canned statement.

However, the resulting venture could end up moving out of Sharp's control. The firm said that "transfer of its subsidiary, SDP, is expected in connection with the business integration".

Sharp said that its share in the business could fall below 40 per cent, making Hon Hai the major shareholder.

The company's revised forecast, which would result in its largest ever loss, comes just after fellow Japanese electronics maker Sony announced its own revised loss expectations, coming in at 520bn.

The combination of recession-dampened appetite for consumer electronics, particularly TVs, the strong yen and rising competition from firms like Samsung has pushed Japanese firms into increasing losses. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.