Strong Third Quarter for Sharp; Raises Net Sales Forecast for Full Year
On February 4th, Sharp Corporation of Japan posted financial results for its third quarter ending December 31, 2013, reporting that “net sales, operating income, and net income increased drastically over the previous quarter.” Net sales were up 21 percent, while net income was up 17.5 percent, both compared to the third quarter a year ago.
For the nine months ending December 31, 2013, Sharp reported a net profit of 17.72 billion yen, the first black ink in three years for the period.
For the third quarter, Sharp reported double-digit growth for its Digital Information Equipment (LCD TVs, mobile phones, etc.), Solar Cells, and Electronic Devices businesses compared to the previous period, and reported growth in all product groups when compared with the same period last year.
In its Business Solutions business (copiers, MFPs, printers, etc.), sales were up 10.7 percent versus the same quarter a year ago, but down 4.5 percent versus the second quarter. For its full fiscal year for Business Solutions, Sharp is forecasting net sales to be up 4.4 percent versus the previous year, and operating income to be up 15 percent versus the previous year.
The firm reports that in its third quarter, its margin for its Business Solutions business declined due to “seasonal factors, tougher competition and other factors,” however, the business is “still secure.” It says it will continue to seek to increase sales of its high-speed MFPs in developed countries, and expand sales of color MFPs in emerging countries, as well as take a “new customer approach combining MFPs and displays.”
For its full fiscal year, Sharp raised its forecast. The company is increasing its net sales forecast by 200 billion yen over its previous forecast, to 2.9 trillion yen, and is revising its operating income upward by 20 billion yen to 100 billion yen. However, Sharp is not revising its net-income forecast, due to an increase in expenses such as interest expenses, exchange-rate loss with depreciation of currencies in emerging countries, and costs associated with financial arrangements.