Sharp logs record loss but says profits will return

Japanese electronics giant Sharp yesterday posted a record annual loss for the second year in a row, and said it would replace its chief after just one year on the job.

The maker of Aquos-brand electronics reported a net loss of 545.3 billion yen (HK$41.6 billion) in the year to March, its worst shortfall, after losing 376 billion yen in the previous year.

However, Sharp said it expected to return to profitability this fiscal year.

"We apologise for having to book huge losses for two straight years," executive director Tetsuo Onishi said after the results announcement.

Sharp, which is undergoing a massive restructuring, said company veteran Kozo Takahashi would become its new president, replacing Takashi Okuda, who was set to become chairman, a title that often precedes retirement in big Japanese companies. Okuda was appointed to the top job in April last year.

The changes are part of a wider management shuffle at the firm, which said the record net loss was largely due to charges stemming from its overhaul.

However, problems in its long-suffering television business showed few signs of abating as sales "fell drastically", it said.