Sharp-Foxconn LCD plant posts $76M net loss

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.
Written by Kevin Kwang, Contributor on

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.






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