Sharp Considering Options for its Future

Sharp says it is considering various possibilities based on drastic reform of its business but has not yet made any specific decisions. The announcement came after various sources reported that the company planned to close three of its LED factories in order to cut costs.

The company was due to hold talks with its main banks on Thursday in the hope of securing its second major bail-out since 2012. CEO Kozo Takahashi was expected to ask officials from Mizuho Bank and Bank of Tokyo-Mitsubishi for further funding and more time to turn the company around. Reports suggest, however, that Sharp’s banks will require the company to make a bold plan, similar to actions taken by Panasonic and Sony.

Sharp also denied reports speculating that the company is expecting a final deficit in the full year of ¥100 billion ($832.2 million), affected by under performing businesses, including its solar cell unit. Last month Sharp revised its profit forecast and said it now expects to record a net loss of $256 million, having previously forecast a net profit of $256 million for the current year (Sharp Now Expects a $256 Million Annual Loss).

Sharp will release details of its new medium-term management plan in May.