Business

Sharp cites material doubt it can survive after loss widens

President Takashi Okuda said Sharp’s turnaround plan includes cutting salaries and selling assets.

Issei Kato/Reuters

President Takashi Okuda said Sharp’s turnaround plan includes cutting salaries and selling assets.

TOKYO — Sharp Corp., the world’s worst-performing major stock, said Thursday that there is ‘‘material doubt’’ about its ability to survive after forecasting a record $5.6 billion full-year loss on falling demand for its display panels.

The net loss will probably be $347.69 billion in the year ending March 31, the TV maker said, scrapping its earlier projection for a $193 billion loss.

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Sharp has failed to win a planned $51.77 billion investment from Taiwan’s Foxconn Technology Group and has had difficulty selling commercial paper as it burns through cash.

The company said its loss for the six months ended Sept. 30 was huge, stemming from falling prices for liquid-crystal-display panels, delays at an LCD factory, and declining sales in Japan and China.

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The company’s warning echoes one made by chipmaker Elpida Memory Inc. before it filed for bankruptcy protection in February.

Sharp follows Panasonic Corp. in predicting losses worse than analysts estimated after losing ground to Samsung Electronics Co. in televisions.

In contrast, Sony Corp. reiterated its forecast for its first annual profit in five years after slashing costs, exiting panel ventures, and trimming its TV lineup.

Bloomberg News

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