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Sharp (SHCAY.PK), a major supplier to Apple (AAPL) warns there is a "material doubt" about its...

Sharp (SHCAY.PK), a major supplier to Apple (AAPL) warns there is a "material doubt" about its ability to survive as it swings to a far larger than expected FQ2 net loss of ¥249.1B ($3.11B) from a net profit of ¥9.4B a year earlier, and as revenue falls to ¥645.5B. Books a special loss of ¥84.4B on restructuring costs and writes down deferred tax assets by ¥61B. Forecasts FY net loss of ¥450B vs previous prediction of ¥250B. (PR)
Comments (8)
  • bjnflicks
    , contributor
    Comments (1970) | Send Message
     
    Apple will bail them out if they need them to keep producing. And I am sure Apple has known about whatever the problem is for a long time and is already on top of it. Apple has so much cash (most of it overseas) that they can easy keep any plant or foundry running. And neither Sharp nor anyone else wants to go out of business or lay off thsouands of workers. Apple products are now king and they have all the money and they will do what is necessary to keep producing them.
    1 Nov 2012, 07:12 AM Reply Like
  • chopchop0
    , contributor
    Comments (3137) | Send Message
     
    Lol, or maybe they realize their mistake and go back to the best of breed, Samsung, as a supplier
    1 Nov 2012, 07:26 AM Reply Like
  • robgra
    , contributor
    Comments (354) | Send Message
     
    LOL, since when was Apple a humanitarian organization given to bailing out failing suppliers? Why would Apple even want to prop up a supplier that was poorly run enough to fail to be able to profit from making the supplies Apple needs, particularly when there are other suppliers in the marketplace who can produce those supplies at a profit to themselves?
    1 Nov 2012, 08:22 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Banks pumped alot of capital into Sharp the last couple month alone.
    1 Nov 2012, 08:59 AM Reply Like
  • Sammy Lee
    , contributor
    Comments (299) | Send Message
     
    Looks like Hugh Hendry made a fortune from the CDS he had on Japanese firms.
    1 Nov 2012, 09:16 AM Reply Like
  • bjnflicks
    , contributor
    Comments (1970) | Send Message
     
    Apple is like a stock rocket, about to take off. Get it super cheap while you can. It will not see the south side of $600 every again onjce it passes it next time. Lord knows why there was such a sell off but it made no sense at all. And yes, Apple will do whatever it takes to keeps its supply lines humming. They could afford to to buy out a Sharp plant or two with their pocket change. Apple now ahs 120 billion in cash, 80% of it offshore.
    1 Nov 2012, 09:58 AM Reply Like
  • Somporn Suksi
    , contributor
    Comments (125) | Send Message
     
    I worked in Japan banking for 5 years. Sharp is a major client of the biggest Japanese banks and they will prop up Sharp with as much lending as they could possibly need, regardless of their existing balance sheet. I wouldn't worry about the corporate viability of Sharp as an entity for even one minute.
    1 Nov 2012, 11:38 AM Reply Like
  • chopchop0
    , contributor
    Comments (3137) | Send Message
     
    A smoking gun?

     

    http://bit.ly/Qopl4V
    7 Nov 2012, 12:11 PM Reply Like
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