Japan's Sharp Corp. said on Friday it expected its first-ever operating loss this year and would eliminate 1,500 jobs as its revenue from high-end televisions plummets in the recession.
Sharp expects an operating loss of 30 billion yen (335 million dollars) in the year to March 31, down from a previous forecast of a 130 billion yen profit.
It would be the first loss ever for the company, which started out making belt buckles and pencils and has become a leader in liquid-crystal display (LCD) televisions.
Sharp has reported earnings since 1953.
The company posted an operating profit of nearly 184 billion yen in the previous year.
Sharp said it would eliminate non-permanent 1,500 jobs at factories by the end of the year to March.
"We have decided not to renew 1,500 contract workers in Japan," Tetsuo Onishi, the company's director for accounting, told a news conference.
"By doing so, we shall build a human resource structure that meets the size of sales," he said.
Top managers will also accept pay cuts of up to 35 per cent over seven months and forego bonuses, the company said.
Sharp hoped to return to profitability in the next fiscal year through aggressive cost cutting and forming tie-ups, Onishi said.
While sales slowed for Sharp's key solar batteries, he said the company was optimistic about the outlook, particularly in the Japanese and US markets.
The company also forecast the LCD market would bottom out in the January-March quarter, as major manufacturers get rid of inventories piled up after disappointing TV sales during and after the Beijing Olympics.
In the first nine months of the year, Sharp said its core LCD business took a beating due to the global downturn.
Even though sales of large LCD televisions rose, revenue decreased as retail prices tumbled, the company said. Sharp also suffered from a plunge in sales of mobile telephone handsets due to a saturated market in Japan.
"We stand in a situation where we are not able to catch up with the rapid fall in prices," Onishi said.
"In terms of the demand and supply conditions for LCDs, we believe we are hitting the bottom in the January-March quarter. Things should improve from April on," he said.
Sharp was additionally hit in the third quarter by special factors including an extraordinary loss of nearly 500 million dollars due to the plunging value of its investments in the stock market.
The company was also paying off a fine, estimated at 120 million dollars, imposed by US authorities for fixing prices of LCD screens with its competitors.
The electronics maker said it now expected a net loss of 100 billion yen for the year, as opposed to an earlier forecast of a net profit of 60 billion yen.
For the first nine months, it posted a net loss of 37.8 billion dollars as opposed to a profit of 72.9 billion dollars in the same period a year earlier.
Sharp expects an operating loss of 30 billion yen (335 million dollars) in the year to March 31, down from a previous forecast of a 130 billion yen profit.
It would be the first loss ever for the company, which started out making belt buckles and pencils and has become a leader in liquid-crystal display (LCD) televisions.
Sharp has reported earnings since 1953.
The company posted an operating profit of nearly 184 billion yen in the previous year.
Sharp said it would eliminate non-permanent 1,500 jobs at factories by the end of the year to March.
"We have decided not to renew 1,500 contract workers in Japan," Tetsuo Onishi, the company's director for accounting, told a news conference.
"By doing so, we shall build a human resource structure that meets the size of sales," he said.
Top managers will also accept pay cuts of up to 35 per cent over seven months and forego bonuses, the company said.
Sharp hoped to return to profitability in the next fiscal year through aggressive cost cutting and forming tie-ups, Onishi said.
While sales slowed for Sharp's key solar batteries, he said the company was optimistic about the outlook, particularly in the Japanese and US markets.
The company also forecast the LCD market would bottom out in the January-March quarter, as major manufacturers get rid of inventories piled up after disappointing TV sales during and after the Beijing Olympics.
In the first nine months of the year, Sharp said its core LCD business took a beating due to the global downturn.
Even though sales of large LCD televisions rose, revenue decreased as retail prices tumbled, the company said. Sharp also suffered from a plunge in sales of mobile telephone handsets due to a saturated market in Japan.
"We stand in a situation where we are not able to catch up with the rapid fall in prices," Onishi said.
"In terms of the demand and supply conditions for LCDs, we believe we are hitting the bottom in the January-March quarter. Things should improve from April on," he said.
Sharp was additionally hit in the third quarter by special factors including an extraordinary loss of nearly 500 million dollars due to the plunging value of its investments in the stock market.
The company was also paying off a fine, estimated at 120 million dollars, imposed by US authorities for fixing prices of LCD screens with its competitors.
The electronics maker said it now expected a net loss of 100 billion yen for the year, as opposed to an earlier forecast of a net profit of 60 billion yen.
For the first nine months, it posted a net loss of 37.8 billion dollars as opposed to a profit of 72.9 billion dollars in the same period a year earlier.
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