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Sony, Sharp in turnaround battle, Panasonic battered

Published on Nov 1, 2012 3:51 PM
Sharp Corp's Aquos TVs are displayed at an electronics store in Tokyo Oct 28, 2012. The maker of Aquos TVs has secured a US$4.6 billion (S$5.6 billion) bank bailout, and has pledged to axe 10,000 jobs, sell assets, and return to profit. At end-June, Sharp's shareholder equity ratio was 18.7 per cent. After adding restructuring charges, valuation losses on stocks of LCD display panels and other costs, Sharp is expected to post a 400 billion yen net loss for April-September. In front-loading those costs, and taking the hit now, Sharp may be better placed to return to profit in the current second half of the year. -- PHOTO: REUTERS

TOKYO (REUTERS) - Struggling Japanese TV maker Sharp warned it might not be able to survive on its own, as it almost doubled its full-year net loss forecast to US$5.6 billion (S$6.8 billion), adding it was considering alliances with other companies.

"Our corporate group has booked massive second-quarter net and operating losses... and now see a serious negative operating cash flow. This raises serious doubts about (our ability) to continue as a going concern," it said in a statement on Thursday.

Bigger Japanese rival Sony, which blazed a trail in the early 1980s with its Walkman portable music players, made a small operating profit in July-September and kept its forecast for a full-year profit of US$1.63 billion.

The maker of Bravia TVs, Vaio laptops and PlayStation game consoles, however, expects to sell fewer of its hand-held PSP and Vita consoles this year - 10 million - than it previously estimated. It also cut its forecasts for sales of its TV sets - to 14.5 million - and compact digital cameras - to 16 million - but kept its PlayStation home console sales estimate at 16 million.

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