Sharp Expects First-Half Operating Loss Due To Falling Prices For Smartphone Displays

[Ron Burgundy]

Japan's Sharp Corp on Monday said it would book an operating loss for April-September rather than a profit due to falling prices for smartphone displays, revealing little sign of a turnaround since a $1.7 billion bank bailout in May. The electronics manufacturer expects to announce an operating loss of 26 billion yen ($215 million) when it reports earnings for the first half of the business year on Friday, instead of the 10 billion yen profit forecast in late July. Sharp, once among the top suppliers to Apple Inc, has lost market share in recent years to the likes of South Korea's LG Display Co Ltd and domestic rival Japan Display Inc. Critics said Sharp over-invested in manufacturing capacity over the past decade, failing to innovate enough to counter profit margin-eroding pressures.

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