The numbers: Downright atrocious. Sharp lost ¥545.4 billion ($5.35 billion) during the fiscal year that ended in March. That follows a roughly $4.76 billion loss for the Osaka-based electronics manufacturer in the previous year.
The takeaway: The company’s LCD division, its largest by sales in the 2012 fiscal year, has been a dog lately. It was the biggest loser for the company last quarter, with an operating loss of ¥138.9 billion ($1.37 billion). The company noted that sales of liquid-crystal displays (LCDs) “fell drastically” and said the decline was “due mainly to sluggish demand in Japan and a sales decline in China due to worsening Japan-China relations.” Declining sales have left expensive Japanese plants running far below capacity. (Some reports say Sharp’s flagship Kameyama LCD plant is running below 50%.) The company also announced a management shakeup as part of its morning earnings news.
What’s interesting: Sharp’s woes suggest danger in betting too much on an alliance with Apple $AAPL. Sharp’s Kameyama plant was largely dedicated to making screens for Apple devices. It has seen sharply dwindling orders, tied to lower-than-expected sales of the iPhone 5. The decline has prompted Sharp to turn to Apple’s arch rival, Samsung Electronics, to beef up orders for the plant. It announced a once-unthinkable alliance with the Korean giant in March.
