Sunday, May 12, 2013

Sharp jp Update less than 48 hours for 2012 financials

On May 14th, Sharp will release their financials for 2012 and unveil a business plan that will define how Sharp will kick start and improve it's finances. So what I've compiled below is some recent quotes about Sharp that I gather from many different sources:

Bad News Notes about Sharp for the past two weeks included:

"Japan's leading maker of liquid crystal displays had a 500 billion yen ($5.1 billion) net loss for the year, worse than the 450 billion yen deficit it forecast in November, the sources said on condition that they not be identified."

"In addition to the write-offs, the company is also taking a charge to put aside cash for possible fines from a display price-fixing investigation in Europe, the sources said."

"The write-off of excess capacity, however, highlights softer demand from Apple, which has seen its profit growth slow dramatically from more than 60 percent over the past five years to a projected rate of less than 5 percent for the next decade."

"but more fundamental problems remain. Sharp likely earned an operating profit in the second half of fiscal 2012 as requested by its main banks. Still, the impairment losses on LCD production facilities and other factors probably widened consolidated losses for the fiscal year beyond the projected Y450 billion."

"Sharp is in desperate need of cash, prompting it to accept a lifeline from rival Samsung. In March, Sharp raised Y10 billion from a new share issuance to Samsung, giving it about a 3% stake in Sharp. Sharp said in a statement the report wasn't based on anything it had announced."

"Sharp, which at the start of the year was forced to curtail production of 9.7-inch screens for Apple's iPad, began limited panel fabrication for Apple's next iPhone, with mass production slated to start in June, the sources said."

Good News Notes about Sharp for the past two weeks included:

"Its operating profit for the second half of its business year was 20 billion yen, compared with the company's forecast for 13.8 billion yen, the sources added."

"In addition, the two lenders have decided to give Sharp an extension on a total of Y360 billion in lending that matures in June. With the new facility, credit extended to Sharp by the two main banks, which stood at about Y200 billion as of March 31 last year, is expected to rise to around Y800 billion."

"Sharp Corp. aims to expand its business tie-up with Samsung Electronics Co. beyond liquid crystal displays, and is considering seeking an additional capital injection from the South Korean electronics conglomerate, the Yomiuri Shimbun reported in its Thursday morning edition.

"Under a three-year business plan scheduled to be released May 14, Sharp will likely include plan to expand its ties in areas such as copiers." 

"The number of Sharp directors will be reduced from 12 to six, and the company’s payroll will have significantly fewer advisers who previously served as presidents or vice presidents, according to the plan for the three-year period ending March 2016. Sharp is expected to release the plan on May 14."

"Sharp Corp. will cut 5,000 jobs, slash the number of directors and advisory positions and shift its production focus under a three-year plan to fully recover from the 2008 global financial crisis."

My View:  All of these statements were from various reports that were posted over the last two weeks. There seems to be as much good as bad about Sharp.  Which could be a good thing.  While I was at the Transform Even this week in Phoenix, I was told by a good source that the deal with Sharp and Samsung was nixed not by Sharp but by some ministry of business. I guess that may have to do with the whole Korean/Japanese culture? However in a recent report from I picked up it was stated that "Sharp will likely include a plan to extend ties in areas such as copiers". This was posted in a reference to "Sharp aims to strengthen tie-up with Samsung", which contradicts what I heard from a "good source".

I'm no genius, I just try to read all of the reports to see what may or may not happen with Sharps Imaging Division.  Here at home I can see what will happen with the page volumes and also understand that there are too many players and our industry needs to contract to protect margins.  In reading most of these reports, only once was there any mention of Sharps Imaging Division. For now Sharp seems to be concentrated on displays, appliances and smart phones.  I guess we'll have a better picture in a couple of days.


"Samsung sees the copier business as having the potential to succeed its mainstay smartphone business, which could slow down amid fierce global competition".

-=Good Selling=-

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