Osaka, Japan - Sharp
Electronics posted higher net sales and increases in operating income and net
income for the fiscal year ended March 31.
Net sales for fiscal 2010 were 3,021.9 billion yen, up 9.7
percent compared to the previous year.
Operating income was 78.8 billion yen, up 52.0 percent while
net income was 19.4 billion yen, 4.4 times that of the previous year, Sharp
The severe business environment continued during fiscal
2010, including a trend in exchange rates resulting in the appreciation of the
yen, and a drop in market prices due to fierce competition. Nevertheless, the
effect of government stimulus packages such as the Eco-Point Program and the
launch of uniquely-featured products enabled Sharp to significantly increase
its sales and profit compared to the previous year, the company said.
However, sales suffered a steep decline in the wake of the
Great East Japan Earthquake on March 11 and this has led actual results to fall
short of the forecast announced on Oct. 28, 2010.
In Consumer/Information Products
segment sales of A/V and communication equipment in fiscal 2010 were 1,426.7
billion yen, up 7.1 percent, and operating income was 40.7 billion yen, 2.6
times that of the previous year. In Japan, sales of LCD TVs increased,
reflecting the effects of the Eco-Point Program. Sales of Blu-ray Disc
recorders also expanded, Sharp said.
For fiscal 2010, sales of LCD TVs were 803.5 billion yen, up
20.5 percent over the previous year. Sales on a unit basis fell slightly short
of initial projections of 15 million units because of the sharp sales drop in
Japan in the last half of March 2011, which were severely affected by the
Nevertheless, Sharp was able to achieve a significant
increase in unit sales compared to last year's results, reaching sales of 14.82
million sets, up 45.5 percent.
In fiscal 2011, Sharp will strengthen its medium-size LCD TV
lineup in countries with emerging economies, and in North America and China,
will introduce large-size LCD TVs such as 60-inch models, therefore creating
new markets, Sharp reported.
Sales of LCDs for fiscal 2010 were 1,026.9 billion yen, up
17.0 percent over the previous year.
Since early April, Sharp has stopped the input of glass
substrates at its large-size LCD plants. However, it aims to restart operations
in early May by stabilizing the procurement of parts and materials and
normalizing inventory levels.
From the second quarter, Sharp expects to be able to
maintain high utilization rates at its large-size LCD plants, with the conversion
of a portion of the production line at the Kameyama No. 2 Plant to produce
small- and medium-size LCDs, and with the increased production ratio of
large-size LCD panels for TVs such as 60-inch models. In addition, the G6 plant
in China (Nanjing CEC-PANDA LCD Technology Co., Ltd) will start full-fledged
operations and contribute to the performance of its LCD business starting from
the middle of fiscal 2011.
Sharp said the move will allow it to procure panels that
take advantage of cost competitiveness in China and the appreciation of the
For small- and medium-size LCDs, extremely adverse market
conditions continued until the first quarter of fiscal 2010. However, beginning
in the second quarter, market conditions showed signs of a turnaround centered
mainly on in-vehicle applications, smartphones, and tablet terminals.
Sharp said in the areas of high-definition LCDs and 3D LCDs
where it's "strengths can be utilized to the fullest, the number of
manufacturers capable of producing these devices is limited." In this
environment, the supply/demand balance has tightened and Sharp's plants are
operating at full capacity.
None of Sharp's production facilities suffered extensive
damage as a result of the Japanese earthquake, the company reported. However,
for the industry as a whole, the supply chain, which spans a wide range of
areas including the semiconductors, materials, gases and chemicals necessary
for various production activities, and the energy infrastructure such as
electric power, were severely affected.
Sharp expects business to remain unpredictable, as a steep
decline in consumption is anticipated. It expects "a rough financial
performance for the first quarter in fiscal 2011, as reflected by the
suspension of glass input at the large-size LCD plants."