Sharp's losses widen, underscoring Foxconn's turnaround challenge

Japanese electronics maker Sharp has reported a huge net loss for the second year running.

That was because of slumping prices for display screens and slower sales of iPhones for which it supplies components to Apple.

The company reported a net loss of 256 billion yen (two billion euros) for the 12 months up to March slightly worse than its previous financial year loss of 222.35 billion yen.

Sharp has agreed to be bought by Taiwan’s Foxconn – also known as Hon Hai – later this year in what is the first foreign takeover of a major Japanese electronics firm.

The latest losses underscore how difficult it will be to turn the firm around.

Sharp’s losses, liabilities underscore challenge for Hon Hai https://t.co/RWJGouD3H2

— The Japan Times (@japantimes) May 12, 2016