Sharp Posts Loss for Quarter, Business Solutions Group’s Sales Down 3.8 Percent
On July 29th, Sharp Corporation of Tokyo, Japan, posted a net loss of ¥27 billion ($24.3 million) for its April-to-June fiscal first quarter – which, however, was smaller than the net loss (¥33 billion) it reported for the same quarter a year ago. Net sales were ¥423.4 billion, down 31.5 percent.
Earlier this year in March, Foxconn Technology Group, the parent company of Taiwan’s Hon Hai Precision Industry, took a controlling interest in Sharp for ¥389 billion ($3.5 billion).
The firm reported a poor performance “due to factors such as sales decline of camera modules and small- and medium-size LCDs for major clients and a shift to a brand licensing business for LCD TVs in the Americas.”
It also reported that sales for its Business Solutions group, which markets copier/MFPs and related business services, supplies, and equipment, totaled ¥77.5 billion, down 3.8 percent versus the same quarter a year ago, and down from the ¥33.7 billion reported in the fourth quarter. Operating income for the Business Solutions group was down 12.8 percent. Sales of copier/printers for the quarter totaled ¥26.8 billion, down from the ¥37.2 billion reported for the same quarter a year ago,
According to Sharp, full-color MFPs released last year enjoyed strong sales in Japan, but overseas, however, sales experienced a “negative impact from a temporary reduction in sales resulting from a channel inventory optimization.” It says that “nevertheless, (the) Business Solutions (group) remains a stable earnings source despite the effects from slack market conditions.” It will expand this business by focusing on MFPs and displays.
Sharp also states that it will issue a fiscal forecast as soon as it’s able to confer with Hon Hai Precision Industry concerning the effects of the merger of the two companies.
- July 2016: Nakayama is New President of Sharp Business Solutions Company
- May 2016: Sales, Profits Down for Sharp’s Fiscal Year, but Business Solutions Group’s Sales Up
- March 2016: Foxconn to Invest Billions of Yen in Sharp’s Business Solutions Group
- March 2016: Foxconn Takes Controlling Interest in Sharp in Reduced Buyout
- February 2016: Loss for Sharp’s Nine Months; Business Solutions’ Sales Steady
- November 2015: Loss for Sharp’s Second Half, but Business Solutions’ Sales Up 3.8 Percent
- August 2015: Sharp Reports Net Loss of $274 Million; MFP Sales Steady; Will Exit TV Business in Americas