Sharp sees red

In the first time in their company’s financial history, Sharp Corporation has suffered an annual profit loss. The announcement came after the company found itself in the red after their third quarter, contributing the financial downfall to price drops in flat panel television sets and a firmer yen. The company has warned of an operating loss of $30 billion yen for the year when its fourth quarter ends March 31.

Due to the recession, the company must take steps in order to ensure its survival. They plan to make operational adjustments in order to save $2.2 billion as well as cut the jobs of 1,500 workers that don’t hold permanent positions with the company. Financial forecasts predict that the losses suffered by Sharp can prove even more significant in 2009.

Other causes of Sharp’s poor earnings include value losses on security holdings and also being subjected to a $120 million fine for taking part in price fixing on LCD televisions. In order to help fix TV sales, the company plans to build a plant to produce LCD televisions at a reduced cost.

Read: [NY Times]