Sony, Sharp post combined $11-billion loss

TOKYO: Sony Corp and Sharp Corp posted a combined 900 billion-yen ($11 billion) loss as the first decline in global TV shipments in six years and a stronger yen hurt overseas sales at Japan's biggest LCD TV makers.

Sony had a record loss of 520 billion yen for the year ended March 31, more than twice what it had predicted in February, after taking a charge to write down deferred tax assets. Sharp also had a record loss of 380 billion yen, 31% more than its earlier forecast the same month.

The two companies, once symbols of Japan's dominance in electronics, have been hammered by Apple Inc and Samsung Electronics, a currency that reached a postwar high and prompted government intervention, and the aftermath of last year's quake and Thai floods.

Sony's new President, Kazuo Hirai, may have to raise equity and cut jobs while Sharp has turned to Taiwan's Foxconn Technology Group for a $1.6 billion infusion.

Tax Charge

Sony took a 300 billion-yen charge to write down the value of deferred tax assets as the company no longer expects to be as profitable as it had once forecast. The company may raise financing with equity, according to Kato. It has not made any specific plans to do so, he said.

The yen's 7.3% surge against the dollar and 11% gain against the euro in 2011 damped the repatriated value of Japanese companies' overseas sales. Sony earned 70% of its revenue outside Japan and Sharp 47%.