Sharp Corp. lowered its operating profit forecast on slumping demand for smartphone displays in China and said it will not forecast net income until the results of reforms are clearer.
Operating income at the struggling liquid crystal display maker will be ¥10 billion ($83 million) for the year ending March 2016, compared with a previous projection of ¥80 billion, the company said in a statement Monday.
The net loss for the six months ended in September was ¥84 billion, compared with the ¥66 billion average of analyst estimates compiled by Bloomberg.
Sharp has posted net losses in three of the past four years as demand for LCD televisions and displays slumped and lower-cost competitors in South Korea and China increased their market share at the Osaka-based company's expense.
The firm is considering selling a stake in the LCD operation to Foxconn Technology Group unit Hon Hai Precision Industry Co. or to Japan Display Inc. owner Innovation Network Japan Corp., people with knowledge of the discussions have said.
Sharp is struggling under rising debt and has announced plans to sell its headquarters, withdraw from the TV business in North America, and cut back in solar panel manufacturing.
The company reported first-half results Monday on a preliminary basis. It is scheduled to post final figures on Friday.
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