Japan’s Sharp Corp is set to swing to an operating loss in the April-June quarter compared with a year ago profit, the Nikkei business daily reported on Friday.

The electronics company is expected to report an operating loss of about 35 billion yen ($282 million) for the quarter, down from a profit of 4.6 billion yen a year earlier, the newspaper said. (s.nikkei.com/1f8Sxu3)

Quarterly sales were expected to fall by 3.2 percent to 600 billion yen.

The Nikkei said Sharp has been hurt by a drop in prices for liquid crystal displays sold to Chinese smartphone makers and also struggled to win new customers during the quarter.

Sales of air conditioner were also slower than expected, it said.

Sharp’s earnings for the July-Sept period would have to improve “significantly” for the company to reach its targeted operating profit of 10 billion yen for the April-September half, the report said.

Earlier in May, Sharp secured a $1.9 billion bailout after falling deep into the red as its smartphone display business struggled to compete with those of Asian rivals.

(Reporting by Sneha Banerjee in Bengaluru; Editing by Richard Pullin)

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