Mixed Bag for Sharp’s Fiscal Year

Sharp Electronics’ North American headquarters in Montvale, NJ

Sharp Corporation, a division of Foxconn, today reported results for its fiscal year that ended on March 31, 2019.

Net sales for the year were ¥2,400.0 billion, down 1.1 percent versus the previous fiscal year. Operating profit was  ¥84.0 billion, down 6.6 percent versus the previous fiscal year. However, profits were  ¥74.2 billion, up 5.7 percent versus the previous fiscal year, but below Sharp’s forecast of  ¥90.0 billion.

The Japan-based company reported that U.S.-China trade friction, “fluctuating demand among major customers,” and other factors contributed to a much more challenging environment than it had anticipated.

However, Sharp said it has achieved 10 consecutive quarters of increasingnet profits since the third-quarter quarter of its fiscal 2016 year.

Fourth-Quarter 2019

For its fourth quarter that ended on March 31, 2019, Sharp reported net sales of ¥628.5 billion, up 5.1 percent year-over-year. Operating profit for the quarter was ¥15.8 billion, down 19.7 percent year-over-year. Profit took a sharp decline, totaling ¥11.1 billion, and down 24.9 percent year-over-year.

Smart Business Solutions Group

Sharp’s Smart Business Solutions group reported net revenue of ¥320.5 billion, up 0.7 percent versus the previous fiscal year. Revenue for all other segments – Smart Homes and IoT Electronic Systems – were also either flat or up. However, net revenue for Sharp’s  Advanced Display Systems was down a sharp 11.7 percent.

Operating profit for Sharp’s Smart Business Solutions group was ¥21.6 billion, down 1.2 percent versus the previous fiscal year. IoT and Advanced Displays saw sharp declines versus the previous year at 13.1 percent and 26.9 percent, respectively.

Forecast

For its current fiscal year that will end on March 31, 2020, Sharp is forecasting net sales to be up 10.4 percent versus the previous fiscal year; operating profit to be up 18.8 percent versus the previous fiscal year; and profits to be up 7.8 percent.

For its Smart Business Solutions group, Sharp plans to expand its PC lineup, launch smartphones for the enterprise, and acquire new dealers to expand its distribution channel.

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