Sharp shares plunge 30% on huge quarterly loss

Shares in Japanese electronics giant Sharp plunged 30 percent in Tokyo trade on Friday, a day after the company said it would cut 5,000 jobs and reported a huge quarterly loss. The stock dropped to 187 yen after the firm said on Thursday it lost 138.4 billion yen ($1.77 billion) in the April-June quarter, nearly three times more than the same quarter last year. The company, which has seen its mainstay television, liquid crystal display and solar panel products struggle, said the job reductions were part of a bid to cut fixed costs by 100 billion yen to help its dented balance sheet. Sharp currently employs 57,000 people globally. "The domestic and Chinese demand for liquid crystal display televisions fell at a faster pace than expected," the company said Thursday about its poor results. "A tough business climate continued as the slower demand forced production adjustment at factories for large LCDs, while prices fell for finished products and electronic devices," it said. Rival Sony's shares also dropped in Tokyo trade, falling 8.5 percent to 882 yen after the maker of PlayStation game consoles and Bravia televisions Thursday reported a widening quarterly loss and chopped its full-year profit forecast. Japan's electronics giants have struggled top cope with a strong yen, falling prices, heavy labour costs and fierce competition from foreign rivals including South Korea's Samsung.