Sales Down for Sharp’s Year, but Improvement in Operating Income, Second Half

Sharp Corporation of Japan announced results for its fiscal year running from April 2, 2016 to March 31, 2017, with net sales down 16.7 percent versus the previous fiscal year. Sharp also reported a loss of 25 billion yen, a loss much smaller than its previous fiscal year’s loss of 256 billion yen. It also reported operating income of 62 billion yen, versus a loss of 162 billion yen for the previous year.

Last year, Foxconn Technology Group, the parent company of Taiwan’s Hon Hai Precision Industry, acquired a controlling interest in Sharp Corporation for some 389 billion yen ($3.5 billion).

Of note is that Sharp’s profits for the second half of its fiscal year were up 20.5 percent, as were its net sales, both versus the previous fiscal year’s second half. Sharp also stated that its earnings had outperformed its forecast announced in February 2017, and that, despite lower sales year-over-year, its structural reforms resulted in “significant improvements in earnings” that led “to profits for the second half of its year.”

Moreover, net sales for its fourth quarter were higher year-over-year for the first time since the first quarter of its 2014 fiscal year.

However, for the year, net sales for Sharp’s Business Solutions group were down 10.5 percent versus the previous fiscal year to 317.7 billion yen. Operating income for the Business Solutions group was down 37.1 percent versus the previous year to 22.5 billion yen, and fourth quarter operating income for the group was down 40.2 percent versus the previous year’s fourth quarter.

Why does Sharp see for the future? It plans on transitioning from operating mainly an electronic-appliance manufacturer competing mainly in Japan and mainly with LCD TVs, to competing globally focusing on IoT (Internet of Things) and “smart” homes, offices, and cities via, for instance, IoT devices and cloud-based services.

Forecast

Sharp will issued a forecast on May 26, 2017.

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