Sharp shares down 8.7, Foxconn 2.4 lower
Japanese firm took 1.6 bln writedown on display business
Foxconn posted lowerthanexpected profit as a result

TOKYO, May 12 Reuters Shares of Taiwan39;s Foxconn and its display affiliate Sharp Corp fell on Friday after the Japanese firm reported a surprise 1.9 billion loss due to writedowns related to its flatscreen assets.

Sharp39;s shares closed 8.7 lower on Friday, their biggest oneday loss since February. Shares in Foxconn, Sharp39;s top shareholder with a 34 direct stake, closed down 2.4 at a nearly twomonth low after reporting a big plunge in earnings due to a 564 million hit related to the Japanese firm.

The surprise impairment led some analysts to downgrade their forecasts for Foxconn, the world39;s largest electronics contract manufacturer and a key Apple supplier. Daiwa cut its 2023 and 2024 earnings forecast for Foxconn by 14 and 5 respectively to reflect a nonoperational loss from Sharp.

Given Sharp had a lot of trouble last year, we did see it coming, although we didn39;t know when or how much, Daiwa analyst Kylie Huang said.

I don39;t expect to see a further, wider loss from Sharp. But, again, Sharp is a wildcard.

Foxconn said it would seek an explanation from the Japanese electronics firm and work harder on the management of our investment businesses, adding that it would ask Sharp to adjust its management team to improve operations if needed.

Sharp said it took a hit of 220 billion yen 1.6 billion as it…