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Monday, May 12, 2014
Sharp Blames Yen For Profit Drop

Sharp has announced a net profit of 11.6 billion yen ($114.05 million) for the year ended March 31, meeting the conditions for a $4.6 billion rescue arranged by banks last year after the company recorded a 545 billion yen loss in the previous year.

It said it was aiming to log a 30 billion yen net profit in FY2014/15, but forecast a drop in operating profit in the current business year to next March as the benefit of a weaker yen over the past year recedes while a pull-back in production of solar cells will also clip profits.

Sharp forecast a 7.9 percent decrease in operating profit to 100 billion yen ($983.19 million) for the current year through March 2014.

Sharp forecast further growth in its LCD panel business, forecasting a 32.2 percent increase in operating profit to 55 billion yen in the current year.

The company plans to strengthen its profitability by improving the initial cost and further enhancement of its small-to medium-size LCDs for smartphones and tablets in the production line of Kameyama No.2. The company also plans to strengthen its relationship with clients for smartphone applications and IGZO LCDs in China.

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