“Sharp Corp. (6753), the Japanese TV-maker that has warned about its ability to survive, posted a narrower loss helped by job cuts, asset sales and a weaker yen.
The net loss was 36.7 billion yen ($398 million) in the three months ended Dec. 31, compared with a loss of 174 billion yen a year earlier, according to a statement today. The Osaka- based company was expected to report a 34 billion yen loss, based on the average of three analyst estimates compiled by Bloomberg.
Japan’s
largest maker of liquid-crystal displays has shed staff and sold a stake to Qualcomm Inc. as it restructures amid slowing TV sales and competition from Samsung Electronics Co. Sharp and other Japanese exporters have also benefited from the yen’s about 15 percent plunge since the end of September, which boosts the repatriated value of overseas sales.
“The weaker yen is helping Japanese TV-makers like Sharp improve business,” Keita Wakabayashi, a Mito Securities Co. analyst in Tokyo, said before the announcement. “Demand hasn’t yet shown any significant recovery.”
The company reiterated that it expects an annual loss of 450 billion yen, its second straight unprofitable year. Sony Corp. andPanasonic Corp. (6752), Japan’s two biggest TV-makers, have also announced turnaround plans because of losses from producing televisions.
Sharp made an operating profit, or sales minus the cost of goods sold and administrative expenses, of 2.6 billion yen in the three months ended Dec. 31. It had an operating loss of 24 billion yen a year earlier. Third-quarter sales totaled 678.2 billion yen.
