Japan's Sharp posts $1.3 billion annual loss as sales of TVs, gadgets slump

Japanese electronics maker Sharp suffered an annual net loss of 125.8B yen ($1.3B), its 1stt yearly red ink in nearly 6 decades, due to declining demand & increasing competition amid a global economic slump. Sharp's loss, reported, was worse than the 100 B yen loss it had projected in Feb., & a sharp drop from the 101.9 B yen profit it earned the year before. The maker of the Aquos line of LCD TVs said revenue for the fiscal year ended March fell to 2.85T yen ($29.5B) from 3.42T yen. Before announcing its projected loss in Feb., the Osaka-based company forecasted a 60B yen profit. It said the business environment for the current fiscal year that began April would remain uncertain, and projected a net profit of 3B yen ($31.0M) on revenues of 2.76T yen ($28.4B). It didn't disclose results for the Jan.-March quarter. It's struck by a bigger-than-anticipated loss "because of faltering consumption, harsh price competition & inventory cutbacks," it said. Sales of TVs & other audio visual equipment, as well as mobile phones, fell due to the strong yen as well as price cuts amid intensifying competition, it said. Sales of other electronics devices declined nearly 30% from a year earlier. Japanese electronics makers, including Sharp's bigger rivals like Sony & Panasonic have also battered by the strong yen, which reduces overseas profits, as well as by the plunging prices of consumer electronics products. Sharp's said it would cut 1,500 contract workers in Japan by the end of March, while its directors will forgo bonus pay in June & accept pay cuts up to 50%. It reduced panel production for mobile phones in response to the slowdown.