Sharp reported a net loss of 138.4 billion yen ($1.76 billion) on sales of 458.6 billion yen. It told analysts that it expected to remain in the red for the rest of the year, and that it will cut 5,000 jobs by March. These are the first layoffs the company has announced since 1950, and news reports say executives are taking salary cuts of between 20 percent and 50 percent.
Osaka-based Sharp has fallen on especially hard times as a result of its narrower focus on TVs, from which it derives about three-fifths of its revenues. In March, it struck a deal to sell a 10 per cent stake in itself for [76 billion yen] to Hon Hai, the Taiwanese contract manufacturer of everything from Apple iPods to Sony PlayStation video-game consoles.
Sony said its sales rose slightly from a year earlier to 1,515.2 billion yen ($19,180 million). However, it reported a net loss of 24.6 billion yen ($313 million), versus the 15.5 billion yen deficit it reported for the second quarter of last year.
Like Panasonic and Toshiba, Sharp and Sony expect business to be challenging for the rest of the year. Sharp reported weakness in its TV, LCD, and solar panel business. Sony cited its TV line. The yen's strength is also hurting Japanese companies, because customers are opting for lower-cost panels and related products from Korea and Taiwan.
It told analysts that it expected to remain in the red for the rest of the year, and that it will cut 5,000 jobs by March.
Sad to know that Sony which was once the innovation king is facing such situation. Sony which originally pioneered the WalkMan technology lost the battle to Apple which improved on walkman technology and released its portable music players. I really hope Sony will use this cost-saving measures to build new innovative products.
Japanese vendors are readjusting and will come back with lots of profit and new interesting products. Looks at Toyota. They have large profit and will become world's largest auto manufacturer. Similalry, Sony and Sharp will have bright future.
talex: great question. There are a number of different opinions, but one is Japan hasn't embraced outsourcing as much as the ROW and as a result has not benefited from the efficiencies that can ge gained. Since the earthquake, many of the factories there have been damaged and/or becoming obsolete. So there is not a lot of investment being made in new technology, whihc is also Japan's forte. Although vertical integration seems to be making comeback, Japan's structure appears to be getting old and needs and upgrde to become competitive.
We heard so much news nowadays of china and Taiwan picking up while japanese companies are in the red not only now but also he next few quarters. What happen to Japanese culture of hardworking and innovation ?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.