Sales, Profits Down for Sharp’s First Quarter

Sharp 8K television

Sharp Corporation of Tokyo, Japan, posted results for its fiscal first quarter that ran from April 1 to June 30, 2019.

Net sales for Sharp, which is owned by Foxconn Technology Group (also known as Hon Hai Precision) fell 3.5 percent year-over-year to ¥514.9, while profits fell 34.7 percent to ¥12.5 billion year-over-year. Operating profit for the quarter fell 41.1 percent year-over-year to ¥14.6 billion.

One bright spot however is that while profits fell year-over-year, the  ¥12.5 billion in profits Sharp reported for its first quarter was an increase versus the ¥11.1 billion it reported for its fourth quarter.

New Business Group Reorganization

Sharp stated that in the first quarter, it had transitioned to three new business groups:

  • 8K Ecosystem, led by J.W. Tai, which involves business solutions such as copier/MFPs/printers, televisions, display devices, and corporate research and development.
  • ICT, led by Yoshihisa Ishida, which involves AIoT, Cocoro Life Services, and Dynabrook Inc.
  • Smart Life, led by Katsuaki Nomura, which involves health and environment systems, camera modules, Sharp Energy Solutions Corporation, and Sharp Fukuyama Corporation.

In the first quarter, sales for Sharp’s 8K Ecosystem group (which includes copier/MFPs) were down 9.8 percent year-over-year to ¥262.5 billion, while operating profit was down 53.6 percent to ¥6.5 billion yen. Operating profit has been declining for the group for the last five quarters, from ¥14.1 billion in first-quarter 2018, to ¥13.1 billion, to ¥13.2 billion, to ¥6.8 billion, and to the most recent quarter’s ¥6.1 billion.

Sharp Cocoro

In a presentation detailing its first-quarter results, Sharp also discussed the Sharp AIoT (artificial intelligence of things) platform, which it refers to as Cocoro. Cocoro consists of two groups: office services and life services. The latter consists of consumer-oriented products, while Cocoro office consists of e-signage, office security, tele-office services, equipment management, “Sharp Works,” and storage services.

Fiscal-Year Forecast

Despite its first-quarter results, Sharp is forecasting positive increases for its fiscal year. For its complete fiscal year that will end on March 30, 2020, Sharp is forecasting net sales of ¥2,650.0 billion yen, versus the ¥2,400.0 it reported for the previous fiscal year; operating profit of ¥100.0 billion, versus the ¥84.1 billion it reported for the previous fiscal year; and profits of ¥80.0 billion, versus the ¥74.2 billion it reported for the previous fiscal year.

Visit Sharp here for a complete presentation detailing results for its first quarter.

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