Sharp Drops Amid Speculation Display Sales Slumping: Tokyo Mover
Sharp Corp. (6753), a Japanese television maker cutting jobs and output to stanch losses, fell for a second day in Tokyo trading amid speculation slumping sales of displays will cause bigger-than-expected losses.
Sharp dropped 3.2 percent to 182 yen as of the close of trading in Tokyo, extending yesterday’s 3.6 percent decline. The shares are 13 yen, or 7.7 percent, above the 38-year low reached at the close on Aug. 15.
Sharp, Japan’s largest maker of liquid-crystal displays, is projecting a 250 billion yen ($3.2 billion) net loss for the current fiscal year, compared with the 286 billion yen net-loss average of 17 analyst estimates compiled by Bloomberg. Investors are becoming more and more concerned about Sharp’s earnings, Yuji Fujimori, a Tokyo-based analyst at Barclays Plc, said by phone today.
“Sales of small and medium-sized LCD panels may be falling short of expectations, while television sales are also seen being pressured,” said Fujimori, who rates the shares the equivalent of hold, with a price estimate of 170 yen.
Sharp plans to report second-quarter earnings later this month, according to the company’s website.
The maker of Aquos TV sets is cutting more than 10,000 jobs and selling overseas plants as well as U.S. solar developer Recurrent Energy LLC in an attempt to return to profit next fiscal year, people with knowledge of the plans said Sept. 26. Sharp on Sept. 28 said it got 360 billion yen in loans from banks as part of its revival plan.
The 100-year-old company has also been renegotiating terms of a proposed stake sale to Taipei-based Foxconn Technology Group after widening its full-year loss forecast eightfold in August, causing a 33 percent slide in its share price.
Foxconn, led by billionaire Terry Gou, agreed in March to invest 67 billion yen for a 9.9 percent stake in Sharp at 550 yen a share.
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