Japanese electronics giant Sharp today posted an annual net loss of $1.3 billion - its first ever loss - due to a slump in sales, but it forecast a return to profit this year.
Sharp logged a net loss of 125.82 billion yen ($1.3 billion) for the past business year to March, against a profit of 101.92 billion yen the previous year. Revenue dropped 16.7% to 2.85 trillion yen.
The company, which makes Aquos-brand flat-screen televisions, blamed the poor performance on weak sales, a stronger yen, severe price competition, restructuring costs and losses on investments.
But Sharp, which like other Japanese manufacturers has been badly hurt by the global economic downturn, predicted a net profit of 3 billion yen this year, helped by job cuts and production streamlining.
'In the worsening global economy there are some favourable factors heading towards a recovery, including the economic stimulus packages instituted by governments around the world, and the fact that the stock market appears to have hit bottom,' the company said.
'However, as for the future outlook, we expect that the business environment will remain unpredictable and uncertain for a while,' it added.
