Sharp CEO Tai says to step down once stock returns to TSE first section

© Reuters. Logo of Sharp Corp is pictured at CEATEC JAPAN 2016 in Chiba© Reuters. Logo of Sharp Corp is pictured at CEATEC JAPAN 2016 in Chiba

TOKYO (Reuters) – Sharp Corp (T:) CEO and President Tai Jeng-wu told reporters on Monday he would step down once the Japanese electronics maker turns profitable again at the net level and its shares return to the first section of the Tokyo Stock Exchange.

Tai, vice chairman of Foxconn, became president of Sharp in August after the Taiwan company, formally known as Hon Hai Precision Industry Co Ltd (TW:), took control of the Japanese firm.

The Tokyo Stock Exchange moved Sharp shares to the bourse’s second section in August after the electronics maker booked negative net assets – where liabilities exceeded assets – for the year ended in March, when the company was hit by falling sales of smartphone panels and restructuring costs.

Sharp has since returned to positive net assets after capital infusion by Foxconn.

A Sharp spokesman said the company has a target of returning to the TSE’s first section around 2018 and declined to elaborate further.

The company has been trying to turn profitable with the help of Foxconn but it still expects to remain in the red at the net level, forecasting a net loss of 41.8 billion yen ($ 368 million) for the current financial year ending in March, extending its losing streak to three years.

Analysts expect Sharp to return to net profit in the next financial year starting in April, with an average estimate of nine analysts polled by Thomson Reuters calling for a net profit of 7.5 billion yen.

($ 1 = 113.5600 yen)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Stock Market News

You May Also Like

Leave a Reply