In the wake of a higher-than-expected loss and a partnership with a key rival, Japan’s Sharp Corp. announced that it is reorganizing its management. This week, Sharp named a new president and CEO: former executive vice president Kozo Takahashi. Takahashi will take the reins June 25.
Takahashi comes from the company’s product development group and has also been in charge of Sharp’s American division. He succeeds Takashi Okuda, who will become chairman.
The company also said it would reduce its capital to help improve its balance sheet and “make a fresh start” by shedding its legacy of cumulative losses.
Sharp’s net loss of $5.3 billion for its fiscal year that ended March 31 was exacerbated by difficulties in one of its key businesses: displays. All product groups apart from Sharp’s LCD panel business showed improved operating income in the second half of the year, the company said. Sharp is taking unusual measures to boost its display business, including providing panels to display arch-rival Samsung Electronics Co.
Sharp’s loss exceeded its forecasts and compares with a 376 billion net loss (in yen) for in the previous fiscal year. The company forecasts a slim 5 billion yen net profit this fiscal year on net sales of 2.7 trillion yen ($26.4 billion), up 8.9 percent from the year before.