Sharp Japan Reports Income Up 52 Percent, Color MFP Sales Up
Sharp Corporation of Japan reports that for its fiscal year ended March 31, 2011, net income was 19.4 billion yen, 4.4 times that of the previous year, while sales were 3,021.9 billion yen, up 9.7 percent compared to the previous year.
Sales of Information Equipment, which includes digital copiers/MFPs, were 273.9 billion yen, up 2.6 percent over the previous year. Sharp attributes the uptick to increased sales of digital color MFPs.
The firm reports that it took a restructuring charges of 12.6 billion yen for the fiscal year, which it incurred for converting a portion of a production facility in Japan that had previously focused on producing large-size LCD panels; the plant now produces small- and mid-size LCDs.
Steep Decline in Sales Due to Japan Disaster
The company notes that its sales suffered a steep decline in the wake of the March 2011 Japan earthquake and tsunami, so that its overall results fell short of the forecast it had made in October 2010.
While none of Sharp’s production facilities suffered extensive damage as a result of the Japan disaster, its supply chain, which includes semiconductors, materials, gases and chemicals, as well its energy sources (such as electric power), were severely affected. Overall, it expects the business environment to remain unpredictable, and anticipates a steep decline in consumption.
Because it’s difficult to estimate the impact of the Japan disaster, Sharp isn’t yet forecasting projections for the 2012 fiscal year, but will as soon it sees the outlook is clearer. Overall, it expects a “rough financial performance” for the first quarter in fiscal 2011, due to the suspension of glass production at its large-size LCD plants. Among measures the company’s taking to boost its financial performance are production of small and mid-size LCDs at Japan plants, full production of large LCDs at a plant in China, start of operations at a solar plant in Italy, and work on solar-power plants through its acquisition of Recurrent in the United States.
Sharp also notes that the difficult economy last year adversely affected its financial results, as well as the growing appreciation of the yen versus the U.S. dollar and Euro.