TOKYO—Sharp Corp. said Friday that it would quit selling
televisions in the U.S. and much of the rest of North and South
America, as part of a turnaround plan aimed at ending steep
losses.
Sharp said it would license its brand name in those regions to
Hisense Co., a Chinese television maker. The Japanese electronics
company will also sell a television plant in Mexico to Hisense.
Also Friday, Sharp reported a net loss of ¥ 33.98 billion ($274
million) for the April-June quarter, hurt by weak sales of solar
panels and flat-screen televisions, after a loss of ¥ 1.8 billion a
year earlier.
Sharp, which recently secured the second bailout in three years
from its main banks, is implementing a large-scale restructuring
plan, including thousands of job cuts and the disposal of some
noncore assets. It incurred a loss of ¥ 222.35 billion in the
fiscal year ended in March.
The latest quarterly result, which was worse than a market
forecast for a loss of ¥ 27.77 billion, fueled doubts among
analysts over the company's forecast for an operating profit of ¥
80 billion for the current fiscal year.
In addition to its struggling solar and TV businesses, Sharp has
run into fierce price competition in smartphone display panels,
which Chief Executive Kozo Takahashi describes as a core business
for the company. Some analysts say Sharp should exit the business
because its scale won't allow it to keep competing against rivals
such as LG Display Co. of South Korea.
Sharp said the deal with Hisense covers most of North and South
America, with the exception of Brazil. The company previously
struck a similar licensing agreement in Europe, with Universal
Media Corp. of Slovakia.
Another Japanese electronics giant, Toshiba Corp., has also
withdrawn from TV manufacturing and sales in much of the world
outside Japan, licensing its brand instead.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com
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