Sharp has denied the latest rumours concerning the future of its LCD business. The Yomiuri Shimbun, a Japanese newspaper, had reported that the company was considering spinning off its its LCD unit into a joint venture with another company, with Innovation Network Corp of Japan and Hon Hai Precision being named as likely candidates.
Earlier this year, Sharp announced its new mid-term management plan, which included reducing its global headcount by 10% and securing its second bank bailout in three years (Sharp Secures Second Bank Bail-Out). Sharp has also forecast its fourth loss in five fiscal years (Sharp Forecast to Post $282 Million Q2 Operating Loss).
In its statement, Sharp said, “We are at the stage of considering various possibilities for fundamental structural reforms of [the] LCD business. At this time, there are no facts that we are starting negotiations with any individual company”.
