Sharp posts record ¥545 billion loss

Sharp has announced a second year of record losses, confirming a net loss of ¥545.35 billion (£3.5bn) in the year ending March 2013.

The Japanese company blamed weak demand for its displays and restructuring costs for the losses, which come on top of a ¥376.08 billion loss in the 2011-12 financial year.

Last August, Sharp had predicted a loss of ¥250bn in this financial year – but the company has well-exceeded that prediction.

Sharp's President, Takashi Okuda, will become Chairman, replacing Chairman Mikio Katayama, who will step down.

Operating losses at Sharp came in at ¥146.27 billion from a loss of ¥37.55 billion this time last year. Revenue remained virtually unchanged at ¥2.48 trillion.

Sharp confirmed two new giant LED TVs just last week, and there was a new range of Sharp TVs for 2013 at CES – even as the company blames weak demand for its panels for the losses.

The company has largely been kept afloat by making cuts and offloading aspects of its business. Sharp sold some of its TV business to Lenovo earlier this year and has been off-loading manufacturing plants, too.

Sharp also cut a deal with Samsung back in March – much to the displeasure of many people in Japan.

Sharp's shares closed up 4.9% on news of the losses.

MORE: Sharp's Samsung deal: sell-out or salvation?
MORE: Sharp begins iPhone 5S screen production

Written by Joe Cox

Follow on Twitter

Join us on Facebook

Joe Cox
Content Director

Joe is the Content Director for What Hi-Fi? and Future’s Product Testing, having previously been the Global Editor-in-Chief of What Hi-Fi?. He has worked on What Hi-Fi? across the print magazine and website for almost 20 years, writing news, reviews and features on everything from turntables to TVs, headphones to hi-fi separates. He has covered product launch events across the world, from Apple to Technics, Sony and Samsung; reported from CES, the Bristol Show, and Munich High End for many years; and written for sites such as the BBC, Stuff, and the Guardian. In his spare time, he enjoys expanding his vinyl collection and cycling (not at the same time).