Skip to main content

A woman walks past the Sharp Corp's Logo at an electronic shop in Tokyo March 6, 2013.

Yuya Shino/Reuters

Sharp Corp. will miss its first-half profit forecast and is poised to lower its target for the full year as rising competition among suppliers of liquid-crystal displays pushes down prices, a person familiar with the matter said.

The supplier of displays to Apple Inc. expects to fall short of its 10 billion yen ($83-million) outlook for operating income when it reports earnings for the six months ending Sept. 30, the person said. The company may report an operating loss for the first half or break even, the person said.

Sharp is considering selling a stake in the LCD operation to Hon Hai Precision Industry Co. or to Japan Display Inc. owner Innovation Network Japan Corp., people with knowledge of discussions within the companies have said. The declining outlook for earnings this year has added urgency to the talks and increased the odds of a deal with Hon Hai, the person said. The Taiwan-based company would not face the antitrust hurdle Japan Display would have to clear as a rival supplier of LCDs to Apple.

Story continues below advertisement

Sharp President Kozo Takahashi is struggling under rising debt and has announced plans to sell the company's headquarters, withdraw from the TV business in North America and cut back in solar panel manufacturing.

Sharp dropped 3.7 per cent to 158 yen as of 1:54 p.m. in Tokyo. The shares have slumped 41 per cent this year, compared with a 2 per cent gain for the Topix index.

The company had initially sought an investment from Taiwan– based Foxconn Technology Group's Hon Hai in 2012, but talks foundered over disagreements on price and the Taipei-based company's possible role.

Sharp spokesman Yoshifumi Seki declined to comment on the company's earnings outlook.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter