Sharp Corp shares fell as much as 6.1 percent after the Nikkei newspaper reported that the electronics manufacturer might post a wider loss for the current fiscal year than analysts had anticipated.
Sharp is in the final stages of negotiations with Hon Hai Precision Industry Co (鴻海精密), which is seeking to acquire the maker of Aquos TVs after years of wrangling.
The Osaka-based company is on track to post an operating loss of ¥90 billion (US$791.9 million) and a net loss of ¥200 billion for fiscal 2015, which ends tomorrow, the Japanese newspaper said.
Sharp last week said that full-year earnings probably missed forecasts because of a deterioration in demand in China.
Sharp and Hon Hai, known as Foxconn Technology Group (富士康) outside Taiwan, have reached broad agreement on an acquisition plan, and directors of both companies are to vote on it today, the Nikkei reported.
“The report of annual losses is having some impact, but there is also the issue of dilution, on which there is very little clarity,” Tokyo-based Ace Research Institute analyst Hideki Yasuda said, referring to the amount of shares that Sharp might issue as part of the Hon Hai deal. “It will take some time after completion of the deal and Sharp earnings showing actual improvement. It’s probably short-term, individual investors that are moving the shares now.”
Sharp shares closed 0.8 percent lower at ¥130 in Tokyo yesterday, after earlier declining to a low of ¥123. The Nikkei 225 Stock Average slipped 0.2 percent.
Sharp is projected to post an operating loss of ¥24 billion and net loss of ¥114 billion, according to the average of analysts’ estimates compiled by Bloomberg.
Hon Hai on Sunday said it would hold a board meeting today as scheduled, where it might discuss the Sharp deal depending on the stage of negotiations, while Sharp on Monday said it aims to reach the agreement as soon as possible.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective