Sharp Posts Loss for Quarter, Business Solutions Group’s Sales Down 3.8 Percent

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Sharp Headquarters in Osaka, Japan

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.

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