Sharp to Book $311 Million Charge as 2,960 Workers Accept Buyout
Sharp Corp. (6753), the world’s worst- performing major stock, will book a 25.3 billion yen ($311 million) one-time charge this quarter to eliminate jobs.
The charge, for 2,960 workers who accepted buyout offers, is already factored into earnings forecasts for the year ending March 31, Osaka, Japan-based Sharp said in a statement today. Sharp, which sought about 2,000 voluntary retirements, closed the offer Nov. 9, it said.
Japan’s biggest liquid-crystal display maker said Nov. 1 it may post a record net loss of 450 billion yen this fiscal year, compared with its earlier projection for a 250 billion yen deficit. Faced with falling demand for TVs, a stronger yen and competition from Samsung Electronics Co. and Apple Inc., Japanese electronics makers including Sharp, Sony Corp. and Panasonic Corp. (6752) have resorted to closing factories, eliminating jobs and cutting costs to revive profit.
Sharp fell 1.7 percent to 172 yen in Tokyo trading today, extending its loss this year to 74 percent, the worst performer among more than 1,600 companies in the MSCI World Index (MXWO) of developed nations.
The company’s turnaround plan includes seeking voluntary retirements, cutting salaries, selling assets and reducing capital investments, Sharp said Nov. 1.
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