Hopes dim for Sharp amid Japan's TV industry sunset
TOKYO (REUTERS) - Sharp shares tumbled nearly 30 per cent to their lowest closing level since 1976 on Friday as investors questioned whether Japan's last major maker of television panels will survive the sunset of the country's television industry.
A day after the century-old company warned of an operating loss of 100 billion yen (S$1.6 billion) for this fiscal year, Moody's and Standard & Poor's cut their credit ratings and rival Fitch warned that Sharp could lose investment-grade status unless a planned restructuring succeeds.
Sharp's mounting losses, a symptom of Japanese TV makers' increasing uncompetitiveness against rivals from South Korea and elsewhere, leave it scrambling for a fresh cash injection.
Analysts say its future may hinge on whether Hon Hai Precision Industries, the flagship of Taiwan's Foxconn Group, is willing to increase its investment in the ailing firm.