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Hon Hai Precision Industry Co.

Sharp Asks 2,000 Employees to Leave – 3,000 Raise Their Hands

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Image of Sharp logoSharp Corp., the struggling Japanese manufacturer that is widely reported to be scrambling to survive, recently offered buyout packages to employees hoping that 2,000 would agree to leave the company. To their surprise, almost 3,000 employees volunteered to leave – good for the company, but a sign of their lack of confidence in the company’s ability to return to profit anytime soon.

See more on this latest indicator of the company’s struggles…

[Read more…] about Sharp Asks 2,000 Employees to Leave – 3,000 Raise Their Hands

Sharp in Talks with Intel and Qualcomm to Receive Capital Investment

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BREAKING NEWS

Graphic of Sharp's LogoAccording to multiple reports from Reuters, Nikkei and others, Sharp Corp., the troubled Japanese consumer electronics manufacturer, is in negotiations with Intel Corp. and Qualcomm Inc. about a much-needed capital investment. Sources are telling the media that Sharp may receive as much as $378 million from the companies. The news was enough to send shares of Sharp stock soaring in Japan.

See more on this surprising twist in the Sharp saga… [Read more…] about Sharp in Talks with Intel and Qualcomm to Receive Capital Investment

Can Sharp Survive? Company’s Performance ‘Raises Serious Doubts About [Our Ability] to Continue’

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Photo of Sharp booth at CESLast week, we reported on a rumor out of Japan that Sharp Corp. was about to report a dismal interim net loss that was much worse than anticipated. This Wednesday, Sharp confirmed those rumors announcing an interim (Apr-Sept) operating loss of ¥168.9 billion ($2.1 billion). This result was after a ¥84.4 billion ($1.1 billion) charge for costs associated with restructuring their struggling business.

But what really has the industry and investors talking is that the company affirmed that it is likely to show a “huge” net loss for the entire fiscal year of ¥450 billion ($5.6 billion), almost double a previous estimate of ¥250 billion. It is also well above analysts’ estimate of a ¥296 billion loss according to a survey of 17 analysts  by Bloomberg. [Read more…] about Can Sharp Survive? Company’s Performance ‘Raises Serious Doubts About [Our Ability] to Continue’

Sharp, Struggling to Survive, Provides Banks with a New Plan; Ratchets Up Painful Cuts

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Photo of Sharp booth at CESSharp Corp., once a high flying superstar of Japanese manufacturing might, finds itself engaged in a multi-front battle for survival as it seeks to replenish its depleted capital reserves. Recently, the company had announced that it was negotiating a partnership deal that included the sale of factories and a capital investment from Taiwan’s Hon Hai Precision Industry Co. But these talks stalled when Sharp’s share price dropped to a value less than half the agreed-upon level.

Now, in a series of announcements, the company has submitted a new plan seeking the support of its banks by “upping the ante” in its restructuring plans, more than doubling staff cuts, selling off company assets, and offering several Sharp-owned properties as collateral – including its headquarters facility.

Sharp’s new plan cuts deeper and will be more painful…but is it enough?… [Read more…] about Sharp, Struggling to Survive, Provides Banks with a New Plan; Ratchets Up Painful Cuts