Hisense buys Sharp America for $23.7 million
Sharp (OTC:SHCAY) is experiencing serious financial problems and already acquired help from Japanese government, yet it’s coming the news that company is ready to sell its American branch. According to industry experts this move won’t bring Sharp long hoped-for relief.
In the opposite, the deal is very attractive for Chinese TV manufacturer Hisense (SS:600060), who is ready to pay $23.7 million for the business covering North and South American markets. Hisense is widening its overseas reach as well as improving its technology. Now Hisense is the world’s fourth biggest LCD TV producer.
The General Manager of the American branch of Hisense, Liu Bin, told that company is planning to transfer its ultra light emitting diode technology, as well as Internet interactive technology onto Sharp's products to enhance its performance in the American market.
"North America, Europe and Australia are the three markets in which we have to make breakthroughs for our global strategy.The acquisition of Sharp's Mexico factory will not only increase our capacity in the Americas, but also enable faster growth in the American markets and enhance our bargaining power," - said Lin Lan, vice-president of Hisense.
Toyota beats analysts’ estimates with record profits
Toyota Motor Corp (NYSE:TM) reported a third year in a row of record first-quarter profits, which outperform the experts ‘forecasts. The profit in period April-June rose up by 10 percent to $5.22 billion (646.39 billion yen), while the experts were predicting the profit totaling 607.5 billion yen.
In the same period Toyota’s sales fell by 0.4 percent to 2.502 million vehicles. Yet the sales can still go higher if Toyota cancels the self-imposed ban on higher production. The ban is associated with company’s quality concerns. In April Toyota already lifted the ban from China and Mexico factories.
The lower sales led to the revision of its 2015 calendar year sales forecast. Initially Toyota was expecting to sell up to 10.15 million vehicles, but after the first quarter company lowered the bar to 10.12 million vehicles.
"Toyota has benefited from the weak yen and strong sales in North America, while sales of its Lexus models have been steady," said Tokyo-based auto analyst Takaki Nakanishi.