Foxconn vice chairman to become Sharp president after takeover

Sharp said Thursday a Foxconn vice chairman will become president of the struggling Japanese electronics maker as it reported an annual net loss for the second straight year.

Tai Jeng-wu, a close aide to Foxconn chairman Terry Gou and fluent Japanese speaker, will be the first top executive in Sharp’s history to be appointed from outside the Osaka-based company, it said.

Sharp will formally approve Tai's appointment as well as investment from Apple supplier Foxconn in Taiwan, formally known as Hon Hai Precision Industry, at its shareholders' meeting to be held in late June.

The Taiwanese electronics maker agreed in late March to buy a 66-per-cent stake in Japan’s century-old company for 388.8 billion yen (3.5 billion dollars), marking the first acquisition of a major Japanese electronics maker by a foreign company.

Sharp president Kozo Takahashi, who will be replaced by Tai, said at a news conference in Tokyo Thursday that the company’s new leadership will “boost its financial standing and work toward continuing business in a stable manner.”

Under new president Tai, Sharp is expected to carry out drastic restructuring including slashing jobs and withdrawing from loss-making operations.

Sharp also said Thursday its operating loss for the financial year ending March 31 more than tripled from a year earlier to 162 billion yen due to slumping sales of TV and liquid crystal displays.

The company also said its annual net loss grew 15.1 per cent to 256 billion yen for the year, while sales were down 11.7 per cent to 2.46 trillion yen.

Sharp decided to postpone releasing its earnings forecast for the current financial year through March 2017, saying the company needs to assess the outcome of the takeover deal.

Last update: Thu, 12/05/2016 - 15:44

More from Business

ECB to hold rates, decides against extending bond-buying scheme

The European Central Bank left its key interest rates at historic lows on Thursday and left its 80-billion-euro-a-...

Nissan finishes purchase of 34-per-cent stake in Mitsubishi Motors

Nissan Motor has completed its purchase of a 34-per-cent stake in scandal-plagued Mitsubishi Motors for 237 billion...

EU seeks to strengthen trade defence measures as China threat looms

The European Commission proposed a new compromise Wednesday to protect EU industry against unfairly cheap imports,...

Study shows Europeans work 19 per cent fewer hours than Americans

Europeans work on average 19 per cent fewer hours per year than Americans, a new study by three economists from the...

Final decision on VW settlement expected within week

Volkswagen seems well on the way to get final approval on a proposed settlement in the emissions test scandal, but...