Sharp sees 86% profit fall as tech firm's woes continue

Sharp has had to be bailed out twice by lenders in the last three years

Troubled Japanese tech firm Sharp saw its operating profit tumble 86% in the three months to September from a year ago.

Its operating profit fell to 3.5bn yen ($29m; £19m) in its fiscal second quarter from 24.5bn yen a year earlier.

The earnings were impacted by falling sales of smartphone displays and delays in reducing inventory.

The struggling consumer electronics maker has been bailed out two times in the last three years by its banks.

In May, Sharp announced losses in the year to March and cut more jobs.

The company has been under pressure from its lenders to sell its loss-making LCD business. The unit reported a loss of 12.7bn yen in the quarter.

Chief executive Kozo Takahashi told a news conference in Tokyo that Sharp was in talks with several companies over a deal for its LCD unit.

"I cannot provide any names, but we are currently in negotiations with multiple companies," he said, adding that he could not reveal a timeline for when a deal would be finalised.

In the six months to September, the firm also saw an operating loss of 25.2bn yen - which is its biggest half year loss in three years.

Sharp announced earlier this week that it would report an operating loss in the six month period and also lowered its annual operating profit forecast to 10bn yen from 80bn yen.