Sharp Expects $1.1B Loss This Year

Sharp now expects to lose over US$1 billion in its fiscal year ending March 31, it said Friday, joining almost every other major Japanese electronics manufacturer in forecasting a loss for the current financial year.

It has revised down its earnings outlook for its current fiscal year, and now expects sales to be 15 percent lower than originally anticipated, it said Friday.

The company predicted a ¥100 billion (US$1.1 billion) net loss for the financial year to the end of March on sales of ¥2.9 trillion. In October it said it expected to make a ¥60 billion profit on sales of ¥3.4 trillion.

Sharp blamed the global recession for the downward revision but the results will also be hit by charges stemming from a reorganization of its LCD (liquid crystal display) plants, losses on investments and a price-fixing fine levied on the company by Japan's Fair Trade Commission.

In response to the predicted losses Sharp said it will reduce the pay and bonuses of board members and executives by between 30 percent and 50 percent.