Japan's Sharp Forecasts $3.8 Billion Loss

Japanese electronics maker Sharp said Wednesday it expected a full year net loss of $3.8 billion as it was confronting a slump in the sales of LCD color televisions and solar batteries.

According to the statement by the company, major price falls of products and devices such as LCD colour televisions and solar batteries as well as a dramatic increase of the yen resulted in the lower revenues. The stagnant economy of Japan has further added to the problems of the company.

Meanwhile, Sharp, founded in 1912, said it would halve the output at its largest TV panel factory in Sakai city, Osaka prefecture. The reduced rate of production, which will continue for a month or more, is likely to hurt Sharp's earnings.

The Sakai plant, capable of making the equivalent of 1.3 million panels for 40-inch TVs a month, was idled for about a month from April. After that, it has run at 80-90 percent of capacity.

Sharp has been affected by the cut-throat competition in the LCD market from South Korean manufacturers. Also, a strong yen is continuing to push up pricing for domestically produced goods while pulling down overseas revenues.