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Tuesday, February 04, 2014
Sharp Reports Improved Results
Sharp lifted its full-year earnings forecast on Tuesday after receiving strong orders from Chinese makers for smartphone panels.
For the nine months ended December 31, 2013, Sharp recorded
net sales of 2,157.2 billion yen, up 21.0% compared to the same period in the previous year, operating income of 81.4 billion yen, an improvement of 247.7 billion yen and net income of 17.7 billion yen, an improvement of 442.0 billion yen.
During the specific period, the Japanese economy was on a mild recovery path, with a pickup in business investment and consumer spending as a result of improved corporate earnings driven by the monetary easing and economic package under the Abenomics scheme. Overseas, emerging markets faced stagnation of growth and Europe showed a slowdown in recovery. However, the overall economy remained brisk, with an upswing in the U.S., along with the China starting to show steady growth.
Japan's largest display maker raised its full-year operating forecast for the year to March 31 to 100 billion yen ($988 million), up from a previous forecast of 80 billion yen.
The Sharp Group has worked to strengthen sales of its high-definition 4K AQUOSLCD TVs, and the "Quattron Pro," which incorporates a full HD panel with high-definition capability equivalent to 4K, smartphones equipped with IGZO
LCDs, solar cells mainly for the booming market in Japan, and small- and medium-size LCDs as well as high-performance camera modules for mobile devices.
During the three months ended December 31, 2013, Sharp also secured funds for strategic investment to strengthen its financial foundation: a 120.3 billion yen new share issuance through a public offering and a secondary offering due to over-allotment, and a 17.4 billion yen new share issuance through third-party allotments with DENSO CORPORATION, Makita Corporation, and LIXIL Corporation.
For the nine months ended December 31, 2013, Sharp's sales of LCD TVs increased due to healthy sales in Japan, China, and emerging countries, although sales in the Americas and Europe were sluggish. Sales of mobile phones decreased due mainly to intensified competition with overseas manufacturers.
Sales of Solar Cells were 276.8 billion yen, up 85.8%. This was due mainly to a sales increase in Japan centering on residential use, as well as industrial use, such as mega-solar power generation projects.
Sales of Sharp's Business Solutions were 235.5 billion yen, up 13.0% compared to the previous year. This was due mainly to robust sales of color MFPs in Japan and overseas, as well as information displays in the U.S.
As for the future outlook, Sharp will try to to expand sales of large-size LCD TVs such as 4K AQUOS and the original "Quattron Pro" models. the company will also
boost sales of LCD TVs in strategic regions, including emerging countries.
Sharp will also strive to expand business by developing customers in small- and medium-size LCDs centering on IGZO LCDs designed for smartphones, tablet terminals and note
In mobile phones, Sharp intends to regain its market share in Japan by introducing "one-of-a-kind" product lines such as smartphones and tablet terminals equipped with IGZO LCDs and "EDGEST" style that realizes slimmer bezel design.
In Health and Environmental Equipment, Sharp will bolster sales of home appliances incorporating a "COCORO-Engine" that uses spoken words and lights to communicate with users, and provides them with information on convenient uses and functions.
In Solar Cells, Sharp will try to take advantage of the booming demand in the Japanese market, particularly for mega-solar power generation projects and for residential use.
Sharp will also enhance sales of distinctive devices, such as camera modules, touchscreen system, sensors, and power devices.