Sharp Corp. is expected to report a net loss of around ¥200 billion for the fiscal year ending Thursday amid a slump in its mainstay liquid crystal display business, sources close to the matter said Tuesday.

The envisioned loss for the second consecutive year for the struggling Japanese electronics maker could expand as Taiwan's Hon Hai Precision Industry Co., which is in the final stages of takeover talks with Sharp, requested an evaluation of its inventory-related losses, the sources said.

Sharp did not reveal an estimated net profit or loss in its latest earnings forecast released last month.