[TOKYO] Japan's Sharp Corp is set to slide back into the red this financial year, hit by fierce price competition in TVs and other key products, the Nikkei business daily reported, sending its shares tumbling to two-year lows.
Sharp could post a net loss in the "tens of billions of yen", also due in part to an extraordinary charge, in contrast to its earlier projection of a 30 billion yen (US$255 million) net profit, the Nikkei said.
Sharp said in a statement on Monday that earnings are unlikely to meet its earlier estimates due to tough competition in liquid crystal display panels and rapid movements in the foreign exchange market that have impacted domestic margins. It said it is considering whether to revise its earnings estimates.
Sharp's operating profit for the current year to end March is likely to around be 50 billion yen - around half the amount that the company forecast earlier as well as half the operating earnings it reported last year, the Nikkei said.
Shares in Sharp dropped 7 per cent to 234 yen in morning trading while the broader market was up 0.8 per cent. At one point, they fell as low as 229 yen, down 9 per cent on the day, a level not seen since December 2012.
Sharp made a small net profit in the last business year after a costly restructuring process. It racked up nearly US$8 billion in combined net losses in the previous two years.