Sharp Posts Profit for First Time in Two Years, but Copier/MFP Profit, Sales Decline
On February 3rd, Japan’s Sharp Corporation raised its earnings forecast for its full-year after reporting its first quarterly profit in over two years.
Sharp, which last year was acquired by Taiwan’s Foxconn, raised its operating profit forecast to 37.3 billion yen ($329.85 million) for its fiscal year that will end on March 31, 2017. Sharp had previously forecast 25.7 billion yen in profits
For its latest quarter of October to December 2016, Sharp posted net profit of 4.2 billion yen, versus a 24.7 billion yen loss for the same quarter a year earlier. Previously, the last time Sharp had posted a profit was for its July-to-September 2014 quarter.
Sharp’s return to profitability is attributed to Foxconn’s cost-cutting, as well as to Foxconn’s parts-procurement power
Sharp’s sales for the quarter, however, totaled 571.5 billion yen, down 13.8 percent year-over-year. Sharp says that this was due mainly to a shift to a brand-licensing business for LCD TVs in the Americas, and to a downturn in demand in LCD TV panels and camera modules among customers. However, it says reforms contributed to improvement in earnings.
Business Solutions Group
Within Sharp’s Business Solutions Group, sales totaled 72.3 billion yen, down 18.6 percent versus the same quarter a year earlier. Operating income for the quarter was 4.1 billion yen, down 41.5 percent versus 7.1 billion yen for the same quarter a year earlier.
For the first half of its current fiscal year, Sharp reported 57.8 billion yen in sales of copier/printers, compared to 78.2 billion yen for the first half of its previous fiscal year, and 58.8 billion for the second half of its previous fiscal year.
Sales of copier/printers were at its lowest in Sharp’s latest quarter – totaling 24.1 billion yen – compared to its past six consecutive quarters.
- November 2016: Smaller Loss for Sharp’s Six Months, but Revenues Decline
- October 2016: Sharp’s Albregts Promoted to President and CEO of Sharp Electronics
- August 2016: Sharp Moving U.S. Headquarters from Mahwah to Smaller Building in Montvale, NJ
- August 2016: Foxconn’s Tai Jeng Wu is New President and CEO of Sharp Corporation
- August 2016: Sharp Posts Loss for Quarter, Business Solutions Group’s Sales Down 3.8 Percent
- 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