Sharp expects sales to keep falling as it reports first loss

Bright spots include China and solar panels as business registers general falls

Sharp, one of the world's largest manufacturers of LCD panels for televisions and computers, reported a big drop in sales and a net loss for the year just ended with sales forecast to drop even more in the current year.

The annual loss is the company's first since it listed on the Tokyo Stock Exchange in 1956 and could have been worse had Sharp not managed profits in Europe and China to offset losses in Japan and the Americas.

The net loss for the period from March 2008 to April 2009 was ¥126 billion (US$1.3 billion as of the last day of the period being reported), which is a big drop from the net profit of ¥102 billion it made in the previous year. Sales were down 17 percent at ¥2.85 trillion.

Sharp blamed the poor results on the global recession and the strength of the Japanese yen, which has made its products more expensive overseas and reduced the value of profits brought back to Japan.

Sales were broadly down across the board and there were few bright spots.

By region Sharp managed to increase sales in China by 0.2 percent to ¥642 billion. Sales in all other regions were down with the sharpest fall seen in the Americas where they fell by 23 percent. Europe was close behind with a drop of 22 percent.

By product category sales were down across the board with a single exception: Sharp managed a 4 percent rise in sales of solar panels as consumers and companies continued to express an interest in the products despite the recession.

Price competition in the LCD television market also impacted the company, which reported increased unit sales but a lower sales amount because of falling prices.

For the current year it expects sales to fall to ¥2.75 trillion but to manage a net profit of ¥3 billion.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags financial resultssharp

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?