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Sharp CE Biz Climbs 13.8%

2/01/2006 09:20:00 AM Eastern

Osaka, Japan — Growing sales of LCD televisions, mainly large-size models, as well as increasing revenue from mobile phones, lifted fiscal third quarter sales in the audio-visual and communication equipment business — namely consumer electronics — at Sharp by 13.8 percent, hitting $2.7 billion, up from $2.4 billion in the year-ago quarter.

Sales in Sharp’s consumer/information products business, which includes consumer electronics, major appliances and information equipment, rose 10.5 percent in the third quarter, ended Dec. 31, reaching $4 billion, compared with a year-earlier $3.7 billion.

Third quarter sales of LCDs moved up 17.9 percent to $1.3 billion, from $1.1 billion year-on-year. The company reported solid growth in sales of large-size LCD color TV panels.

Sharp’s third-quarter sales for its electronic components business, which includes LCDs, jumped 16.3 percent to $2.2 billion, from $1.9 billion in the same three months in 2004.

Operating income in the third quarter for audio/visual and communications equipment reached $99.9 million, a 15.2 percent increase over the $86.8 million recorded in the third quarter the prior year.

Consumer/information products operating income moved ahead 14.2 percent in the third quarter, coming in at $156.5 million, up from a year-earlier $137.1 million.

LCD business operating income in the third quarter reached $145 million, a 39.5 percent rise over the $103.9 million recorded in the same three months the previous year.

Electronic components business moved up 24.1 percent in the quarter, to $214 million, compared to a year-on-year $172.4 million.

For the nine months, audio-visual and communication equipment sales increased 12.3 percent to $7.1 billion from $6.3 billion. This CE segment recorded operating income of $238.4 million for the nine months, up 10.1 percent from $216.6 million the prior year.

In the nine months, Sharp’s LCD business moved up 11.1 percent, hitting $3.8 billion, from $3.5 billion in 2004. Operating income jumped 14.2 percent in the same time frame, to $409.6 million, from $358.7 million the previous year.

During the third quarter, Sharp said it worked to enhance its unique products, such as LCD color TVs and mobile phones, and also focused its efforts on expanding such proprietary-device businesses as LCDs. To that end, three month consolidated revenue increased 12.5 percent to $6.2 billion from $5.5 billion.

Operating income over the third quarter soared 20 percent, reaching $373 million, from $310.7 million in 2004. Net income increased 25.8 percent in the three months, coming in at $223.8 million, compared with a year-over-year $177.9 million.

For the nine months, consolidated revenue moved up 8.4 percent to $17.6 billion from $16.3 billion. Operating income in the same period increased 4.2 percent to $1 billion from a year-ago $971.8 million, while net income also was up 4.2 percent to $534.8 million from a year-earlier $513 million.