Shares of Foxconn, Sharp slide after Japan company's big writedown (updated)
12/05/2023 02:27
(Adds Foxconn shares, details)
TOKYO/TAIPEI, May 12 (Reuters) - Shares of Taiwan's
Foxconn 2317.TW and Sharp Corp 6753.T , the Japanese
electronics maker it holds a 34% stake in, fell on Friday after
Sharp reported a $1.9 billion loss on write-downs of its panel
display business and other assets.
Sharp's shares were down 7% early on Friday at 921 yen, on
track for their biggest one-day loss since February, while
Foxconn's shares dropped 2.4%.
Foxconn, the world's largest contract electronics maker, on
Thursday attributed a 56% slump in first-quarter profit to a
T$17.3 billion ($563.83 million) writedown related to its stake
in Sharp and said visibility for the full year was limited.
Foxconn's net profit of T$12.8 billion was much worse than
an average forecast of T$29.18 billion in profit from 13
analysts, according to Refinitiv.
It said it expected revenues for cloud and networking
products in 2023 to be flat amid a sluggish economy, compared to
a previous forecast of significant growth for those sectors.
Sharp said it took a hit of 220 billion yen ($1.6 billion)
as it wrote down the value of building and machinery in both its
LCD and OLED display businesses in Japan, and other assets.
Foxconn said it would seek an explanation from the
Japanese electronics firm and "work harder on the management of
our investment businesses."
($1 = 135.0500 yen)
($1 = 30.6830 Taiwan dollars)
(Reporting by David Dolan; Editing by Jacqueline Wong and Jamie
Freed)
((david.dolan@thomsonreuters.com; +81 3 4563 2708;))