Japanese electronics giant, Sharp, posted a loss for two consecutive years. The company also intends to depose the CEO who was installed a year ago.
Sharp lost 545.3 billion yen (USD 51.3 billion) in the fiscal year ending March 2013. The loss swelled pretty big compared to losses in the previous year in the same period a year earlier 376 billion yen.
Despite high losses, Sharp sure to be back next year to make a profit
“We’re sorry we’ve suffered substantial losses in two consecutive years,” said Sharp Director Tetsuo Onishi after reporting financial results to the public as quoted by AFP on Tuesday (05/14/2013).
Sharp is currently undergoing a restructuring of the company, one of them with layoffs (layoffs) with thousands of employees. In fact, the company will also depose Takashi Okuda from the post of CEO replaced by Kozo Takahashi.
Though Okuda recently served as CEO of Sharp in April last year. After stepping down, Okuda served as commissioner will, his last position before retiring in habits of the Japanese.
This loss occurs due to high operating expenses and the company’s sales plummeted, chiefly in the television division. The television division turnover has fallen very deep.
“Our mobile phone sales also fell, due to lack of raw materials in the first half of last year,” he said.
Total sales of Sharp at the end of March 2013 reached 2.48 trillion yen, up from the same period last year 2.46 trillion. Next year, Sharp predict could reach 5 billion yen profit.
“We had anticipated that the overall business situation this year is full of uncertainty,” he said.