2017. 1. 31. Sharp to Explore Options for LCD Panel Business ­ WSJ This copy is for your personal, non­commercial use only. To order presentation­ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. http://www.wsj.com/articles/sharp­to­quit­selling­tvs­in­the­u­s­1438324681 ASIAN BUSINESS NEWS Sharp to Explore Options for LCD Panel Business Japanese electronics company to quit selling TVs in the U.S. Sharp says it is seeking external help to prop up its LCD business. PHOTO: YOSHIKAZU TSUNO/AGENCE FRANCE­ PRESSE/GETTY IMAGES By TAKASHI MOCHIZUKI Updated July 31, 2015 9:08 a.m. ET TOKYO—Sharp Corp. said it would seek external help to prop up its LCD panel-making business and plans to quit selling televisions in the U.S. and much of the rest of North and South America, as the electronics company steps up its turnaround plan aimed at ending steep losses. Chief Executive Kozo Takahashi said on Friday the company would consider a wide range of options for the panel business, including injecting cash from outside, and didn’t rule out the possibility that Sharp would spin off the unit and grant an external body majority control. Friday’s announcement is a sharp turnaround from two months ago, when Mr. Takahashi had said that the panel unit, a core part of the company, would remain wholly-owned as it was an essential component of the turnaround plan. The Osaka-based company, which recently secured its second bailout in three years from its main banks, is restructuring its main businesses, such as consumer electronics, solar panels and display panels, amid growing competition. The measures include thousands of job cuts and the potential sale of its headquarters. Mr. Takahashi said quickly deteriorating market conditions made him more pessimistic about the business outlook and prompted the change of mind on the panel business. For its first fiscal quarter ended in June, Sharp reported a net loss of ¥33.98 billion ($274 million), while revenue was flat. It recorded an operating loss of ¥28.8 billion, compared with a profit of ¥4.7 billion in the same period a year earlier, hurt by fierce price competition with rivals. “Conditions surrounding us remain very severe,” Mr. Takahashi said. The first-quarter results were in line with the company’s expectations, he said, adding that it remains on track to post an operating profit of ¥10 billion for the first half of the current fiscal year. For the 12-month period, the company stood pat on its May forecast of a profit of ¥80 billion. In withdrawing from the TV business in the Americas, Sharp will sell much of its North and South America TV operations, with the exception of Brazil, to Hisense Co., a Chinese manufacturer. Sharp had a 4.6% share in the North America TV market, far behind market leader Samsung’s 35.1%, according to research company IHS. https://www.wsj.com/articles/sharp­to­quit­selling­tvs­in­the­u­s­1438324681 1/2 2017. 1. 31. Sharp to Explore Options for LCD Panel Business ­ WSJ Yu Okazaki, an analyst at Nomura Securities, said Friday’s announcement was an important step for Sharp’s revival, but added the company needs to further review its business portfolio to sharpen its focus. Atsushi Osanai, an associate professor at Waseda Business School who used to work at Sony’s TV arm, said Sharp should focus on unique consumer electronics goods, such as its Tea-Care automated tea makers and direct-current air conditioners, which Sharp says would increase power efficiency. Write to Takashi Mochizuki at takashi.mochizuki@wsj.com Copyright ©2017 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non­commercial use only. To order presentation­ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. https://www.wsj.com/articles/sharp­to­quit­selling­tvs­in­the­u­s­1438324681 2/2
