Sharp on Friday reported reduced net loss along with a small
operating profit in its latest quarter.
The Japanese company reported a net loss of 36.7 billion yen ($398
million), in the three months ended Dec. 31 compared with a loss of
Y173.6 billion in the same period a year earlier. On an operating
basis, the company bounced back into the black with a profit of
Y2.6 billion. Revenue rose 15% to Y678.2 billion.
Sharp said its earnings were bolstered by sales of home appliances
and mobile phones, along with a weaker Japanese yen that helped it
compete overseas. The company added it made money from its TV
business in the third quarter but forecast deeper annual losses
from LCD panels due to softer demand for small and medium sized
panels for smartphones.
Sharp warned that such losses may raise uncertainty about Sharp's
future. In addition, the company's credit rating has been lowered
to levels below investment grade, pushing the company to sell its
TV-related factories as well to mortgage its offices and factories
in Japan, in order to raise cash. Sharp may sell its Chinese TV
assembly plant to Lenovo Group, according to earlier reports. The
company is also in talks to sell a Mexico factory to Hon Hai
Precision industry. The company has also striked an n agreement to
accept a capital injection of up to Y9.9 billion ($120 million)
For the full-year to March, Sharp said it is maintaining its
forecasts for a net loss of Y450 billion, an operating loss of Y155
billion and revenue of Y2.46 trillion.