Sharp Announces Record Annual Loss

Sharp Corp. has announced that it has experienced a US$4.7 billion net loss for the year ended March 2012. The company notes that the losses are a result of a slow down in its LCD TV sales.

Of that US$4.7 billion loss, US$1.4 billion of it is a result of the manufacturer's restructuring plan.

"In order to reinforce mobile LCD business toward an optimal LCD production framework, [Sharp] is converting its production lines to produce mobile LCDs at the Kameyama No.2 Plant, where it used to focus on production of large-size LCDs for TVs," reads a statement issued by the company. "The plant started a mass production of high-performance LCD panels incorporating oxide semiconductor, InGaZnO (IGZO)."

Sharp also says that it hopes to improve its profitability by "raising the utilization rate and reinforcing its cost competitiveness" through a new "strategic vertical integration framework" that is being promoted by its recently announced alliance with Hon Hai.

Back in March, Hon Hai Precision Industry, Foxconn Electronics' parent company, purchased a 9.88% share in Sharp, as well as nearly half of the company's LCD panel subsidiary, Sharp Panel Displays. At the time, it was said that this move would eventually help Sharp bump up its production and experience a much lower per-unit cost within its manufacturing facilities.

In addition to the total annual net loss, Sharp also says that it had operating loses of US$466 million for the year ended March 2012, compared to operating profit of US$982 million for the year ended March 2011. Sales also dipped 18.7% to US$305 billion for the year.

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