Sharp expects $475 million loss for 2008

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Sharp expects $475 million loss for 2008

Sharp today said it expects to post a record loss for 2008 as a result of impairment charges related the stock it holds in other companies. The loss is estimated to be in the $475 million neighborhood. Write downs of its investments in other companies are necessary “since their fair market value has declined significantly and is unlikely to recover in the future,” the firm said.

The Nikkei Business daily believes that Sharp will most likely take the charge for its investment in Pioneer. The paper noted that Sharp previously purchased 30 million shares in Pioneer for 1385 yen per share. However, Pioneer’s stock has declined dramatically since then and currently trades for about 160 yen.