Sharp Reports Profit, Lower Sales For FY - Twice

Sharp Reports Profit, Lower Sales For FY

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Osaka, Japan - Sharp Electronics reported lower sales but turned a profit for the fiscal year, ended March 31.

Net sales were $29.5 billion, down 3.2 percent from the prior year, while net income was $45.9 million, compared with a net loss of $1.34 billion in the prior fiscal year.

Sales of LCD TVs destined for overseas markets declined. Operating income was $39.5 million, compared with an operating loss of $617 million posted in the previous year, as profits improved for LCD TVs and mobile phones, Sharp said.

Sharp reported that in large-size LCDs it was temporarily affected by high prices of materials for LCD TV panels and costs associated with the start of operations at an LCD plant in Sakai in October 2009.

In fiscal 2009, LCD panel prices declined approximately 20 percent compared with the prior year. For small- and medium-size LCDs, the severe market environment continued, including declines in sales volume and price for units intended for mobile phones and game devices.

As a result, overall sales of LCDs in fiscal 2009 were $9.5 billion, down 15.9 percent compared with the previous year. However, operating income was $118.6 million, up approximately 170 percent over the previous year, even after including start-up costs for the LCD plant in Sakai.

On a monetary basis, sales of LCD TVs for fiscal 2009 were $7.13 billion, down 8.6 percent from the previous year. Sales on a unit basis were 10.18 million sets, up 1.8 percent.

Sharp said it will work to increase sales in fiscal 2010 through the early introduction of 3D LCD TVs equipped with UV2A photo-alignment technology, four-primary-color technology and other proprietary LCD technologies.

In addition, the company said it will take proactive steps to globally expand sales of LED Aquos featuring panels based on new technologies. Sharp will also be pursuing the creation of optimized production frameworks -- from design to manufacturing -- to meet the needs of markets including the U.S. and Europe, as well as China and other developing countries where demand is expanding rapidly.

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