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Sharp shares fall 30% after it warns losses will grow

Aug 032012
 

Shares in Japanese television maker Sharp have dropped 30% after it warned that losses this year would be eight times bigger than first thought.

The firm said it now expects a full-year loss of 250bn yen ($3.2bn; £2.05bn), up from its earlier estimate of 30bn yen.

Sharp and other Japanese firms have been hit by a strong yen and tougher foreign competition.

On Thursday, Sharp said it would cut 5,000 jobs to reduce costs.

Sharp announced its loss adjustment as part of its quarterly earnings report.

During the three months from April to June, the firm reported a net loss of 138.4bn yen, compared with 49.3bn yen the previous year.

Sharp has seen demand slow for liquid crystal display televisions, its main product.

“The domestic and Chinese demand for liquid crystal display televisions fell at a faster pace than expected,” the company said on Thursday.

Competition

Analysts said Sharp should be looking to increase profit margins by making more expensive products such as LED and 3D televisions.

“The focus for Sharp has to be in terms of leveraging its ability to sell into the higher-end market as far as televisions are concerned,” said Satish Lele from Frost and Sullivan.

He added that Japanese TV-makers faced stiff competition from Taiwanese and Korean players, especially in emerging markets.

Sony shares also fell 8.5% on Friday after it too reported widening quarterly losses and cut its full-year profit.

However, Mr Lele pointed out that unlike Sony and rival Samsung, Sharp is much more exposed to the declining TV business as it has not diversified the products it offers.

Indian bond yields up in thin trade;

Jul 102009
 

lousy-investment-bond Indian federal bond yields edged up on Friday but volume was light as traders awaited direction from a 150 billion rupees ($3.1 billion)
auction.

The sale, later in the day, is more than the 80 billion rupees indicated in the tentative calendar and includes a new 10-year bond.

At 10:58 a.m. (00528 GMT), the yield on the 6.07 percent bond maturing in 2014 was at 6.40 per cent, above its previous close of 6.37 percent. There were no deals in the benchmark 10-year bond. Volumes were low at 10.75 billion rupees on the central bank’s trading platform.

Traders are also awaiting May industrial output data around noon (0630 GMT). A Reuters poll forecast the output to rise 1.4 per cent, unchanged from the previous month.

The benchmark five-year swap rate was at 6.23/28 per cent, above its previous close of 6.21/26 percent and spreads between 1- and 10-year government bonds was at 291 basis points.
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