New Majority Owner Foxconn ‘Committed To Restoring’ Sharp to Profitability

Foxconn’s $3.5 billion buy of 66 percent of Sharp marks a “historic strategic alliance of two global technology leaders,” the companies said in a joint statement Wednesday. As Sharp’s new majority owner, Foxconn is “committed to restoring profitability and strengthening operations to once again make Sharp a leader in the global electronics arena and a world-class company with a positive outlook,” the statement said. “Both our teams are on the same page working towards the same goal.” Foxconn and Sharp “are confident about our future together,” because both companies “have been working very closely and successfully since 2012,” the statement said. The deal comes as Sharp faces significant financial hurdles. It expects to post a $1.98 billion net loss for the fiscal year that officially closes Thursday, the company said in a Wednesday forecast announcement that cited declining sales and price erosion in its core LCD business as its main problems. The company also has suffered operational losses “from low factory utilization,” and expects “further devaluation of inventory” due to “slow moving stocks,” it said.