Wiping Out Losses: Sharp to cut 5k jobs for $1.7b bailout
A company that has been making profits has retained earnings from past years
TOKYO:
Japan’s Sharp Corporation is considering using capital to reduce accumulated losses on its book, an accounting manoeuvre that would allow the loss-making electronics maker to resume dividend payment earlier, a source said on Saturday. The Osaka-based maker of LCD displays is set to receive a $1.7 billion bailout from its main lenders in return for a promise to cut 5,000 jobs and split off its ailing smartphone display unit, a separate source told Reuters. As a result of restructuring, the company is expected to report losses of more than ¥200 billion ($1.67 billion) for the year ended in March, on top of combined ¥900 billion losses in the previous three years. A company that has been making profits has retained earnings from past years and it can use the money for dividend pay-out for shareholders.
Published in The Express Tribune, May 10th, 2015.
Japan’s Sharp Corporation is considering using capital to reduce accumulated losses on its book, an accounting manoeuvre that would allow the loss-making electronics maker to resume dividend payment earlier, a source said on Saturday. The Osaka-based maker of LCD displays is set to receive a $1.7 billion bailout from its main lenders in return for a promise to cut 5,000 jobs and split off its ailing smartphone display unit, a separate source told Reuters. As a result of restructuring, the company is expected to report losses of more than ¥200 billion ($1.67 billion) for the year ended in March, on top of combined ¥900 billion losses in the previous three years. A company that has been making profits has retained earnings from past years and it can use the money for dividend pay-out for shareholders.
Published in The Express Tribune, May 10th, 2015.