Sharp profits surge, forecast delayed

electronics sales but warned of a severe business climate following the March 11 quake disaster.
Sharp held off on releasing its outlook for the year to March 2012, saying the impact from the massive earthquake and tsunami disaster on its business was too widespread to accurately assess at the moment.
Its net profit for the year ended in March came to 19,4 billion yen (US$238 million), up 341,2 percent from the previous year but short of the 30 billion yen projected earlier as the disaster disrupted industrial supply chains.
Operating profit jumped 52 percent to 78,9 billion yen as sales grew 9,7 percent to 3,02 trillion yen.
The company reported strong sales of liquid crystal display television sets due to government subsidies for energy-saving consumer appliances. Blu-ray disc recorders also fared well.
Sharp also benefited from demand for small and medium-sized LCDs used in smartphones, tablet computers and games consoles.
The company, however, warned that “we expect the business environment to become more severe than ever, due to the impact of the Great East Japan earthquake on supply chains of manufacturers, a further decline in consumer confidence and a rise in the price of natural resources”.
“It is extremely difficult at this time to reasonably estimate the impact of the earthquake on our financial results, which will be broad across our entire business activities from production to sales,” it said in a statement.
Sony and Sharp separately announced that Sony would hold off additional investment in a joint venture with Sharp to produce and sell large LCD panels. Under the original agreement, Sony was to make additional capital injections to the venture by the end of April, which would result in its equity stake rising to a maximum of 34 percent from 7 percent.
Sharp and Sony have agreed to suspend the plan, they said, adding they would discuss any future contributions by Sony by the end of March 2012.
Sony spokeswoman Yuki Shima said the decision was made to allow the companies to “respond flexibly to the constantly changing business environment surrounding the LCD TV business”. – AFP.