Sharp Corp. posted a second straight annual loss and said its liabilities exceeded its assets, highlighting the turnaround challenge facing new owner Hon Hai Precision Industry Co., also known as Foxconn Technology Group.
The net loss was ¥256 billion in the year ended March, from a loss of ¥222.3 billion a year earlier, the Osaka-based company said Thursday. The result compares with the ¥161 billion loss expected by analysts.
Sharp's struggle with deteriorating demand for consumer electronics and the displays it provides to smartphone makers such as Apple Inc. has resulted in more than $12 billion in net losses over the past five years.
Hon Hai's Terry Gou spent four years chasing the company before winning control with a $3.5 billion deal in March. He is now facing the task of reversing the fortunes of businesses ranging from household appliances and solar panels to components and office equipment.
"There is no quick turnaround for Sharp's businesses and the tough times are likely to continue for a while," Makoto Kikuchi, chief executive officer of Myojo Asset Management Co., said prior to the earnings announcement.
"Additional restructuring is unavoidable, but they've been through this already and it's far from guaranteed to improve earnings."