Sharp Corp. is reportedly considering to sell its liquid-crystal display (LCD) operation as the company struggles amid rising competition among suppliers. The Japanese electronics manufacturer will also miss its first-half profit forecast and is set to lower its target for the full year as it shares decline in more than a quarter.
According to an insider familiar with the issue, Sharp Corp. may report an operating loss for the first half or break even after its expected ¥10 biliion ($83 million) prospect for operational income fall short for the six months, which will end on Sept. 30, Bloomberg Business reported.
Due to Sharp's declining outlook for report earnings this year, the company found the urgency to consider the talks and increase the odds to sell a stake in its LCD operation to Hon Hai Precision Industry Co. or to Japan Display Inc. owner Innovation Network Japan Corp, RTT News noted.
Meanwhile, the Taiwan-based Foxconn Technology Group's company is also looking to seek funding from Apple Inc. for the deal, Digitimes revealed. Other reports also claimed that Foxconn and Apple's move would help prevent a merger between the two Japan-based display firms since it could reduce Apple's display supply access while possibly increase its costs.
In 2012, Sharp had initially sought an investment from Hon Hai. However, the talks went down due to disagreements on price and the possible role of the Taiwan-based company.
The move to sell its LCD operation came as Sharp President Kozo Takahashi struggles to turn its operations profitable. Aside from the LCD operation, the Japanese maker has also announced its plans to sell the company's headquarters and to withdraw from the television business in North America as well as to cut back its solar panel production.
As of late, Sharp Corp. spokesperson Yoshifumi Seki has declined to comment on the company's earnings outlook. while Foxconn couldn't immediately comment on reports based on market speculations.
