TOKYO (Reuters) – Sharp Corp on Friday said it would exit the TV set business in the Americas and consider more steps to shore up its finances, after reporting a deeper-than-expected quarterly loss on weak sales of smartphone displays. The Japanese electronics maker said it would sell its TV manufacturing plant in Mexico and license its brand in the Americas to China’s Hisense Group. In a separate statement, Hisense said it would pay $23.7 million for the business.
A woman holding her umbrella walks past an advertisement poster for Sharp Corp’s Aquos outside an electronics shop in Tokyo, Japan, July 31, 2015. REUTERS/Yuya Shino
Osaka-based Sharp was once a highly profitable manufacturer of premium TVs and a favoured screen supplier to Apple Inc, but has struggled to innovate enough to fend off Asian rivals. But, in May, the company sought $1.9 billion in its second major bank-led financing in three years. In return, it promised to cut 5,000 jobs, or 10 percent of staff.
“Sharp has not been able to fully adapt to the intensifying market competition, which led to significantly lower profits compared to the initial projections for the previous fiscal year, and has been suffering from poor earnings performance,” Sharp said in a statement explaining the TV business sale. Continue Reading…