Sharp-Foxconn LCD plant posts $76M net loss

Sharp-Foxconn LCD plant posts $76M net loss

Summary: Joint venture between both companies in Osaka, Japan, reports a 7.4 billion yen net loss during April to December last year, but it did see growing sales since last July.

SHARE:
1

The LCD plant jointly managed by Sharp and Taiwanese electronics manufacturer Foxconn in Japan has reported a net loss of 7.4 billion yen (US$76 million) during the April to December period last year.

According to a Japan Times report Wednesday, Sakai Display Products, which runs the factory making large LCD panels, also logged an operating loss of 3.3 billion yen (US$33.9 million) on sales of 108.6 billion yen (US$1.1 billion).

It noted the loss was the result of a slowdown in the LCD panel business during the April-June quarter, when the Sakai plant was still a sole subsidiary of Sharp.

The company did see an upturn in fortunes after July when it became a joint operation between Sharp and Foxconn, also known as Hon Hai, as sales recovered. It was not enough to cover the slow sales of the earlier period though, the report noted.

News of Foxconn's investment into Sharp was first made in February 2012, when it announced it would buy 66.5 billion yen (US$800 million) worth of new shares to prop up the ailing Japanese electronics giant. It would also acquire 46.5 percent of Sharp's 92.96 percent stake in the latter's LCD factory in western Japan.

However, with Sharp continuing to see a decline in business, it had to revise the initial sales terms last September to make the deal more palatable for Foxconn.

 

 

 

 

 

Topics: Tech Industry, Hardware

Kevin Kwang

About Kevin Kwang

A Singapore-based freelance IT writer, Kevin made the move from custom publishing focusing on travel and lifestyle to the ever-changing, jargon-filled world of IT and biz tech reporting, and considered this somewhat a leap of faith. Since then, he has covered a myriad of beats including security, mobile communications, and cloud computing.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

1 comment
Log in or register to join the discussion
  • This is real bad news for Apple

    ....

    tch tch tch
    Uralbas