Sharp posts first qtrly profit in yr, TVs recover
* Q2 profit nearly doubles to Y27.6 bln; consensus Y25.2 bln
* Keeps annual oper profit forecast at 50 bln yen
* Shares close down 1.0 pct before results
* Sanyo Q2 profit down 35 pct at Y12 bln; consensus Y9.3 bln
(Adds Sanyo results, comments from analyst, Sharp executive)
TOKYO, Oct 29 (Reuters) - Japan's Sharp Corp (6753.T) posted its first quarterly profit in a year as TV and screen panel demand recovered, but a 15 percent fall in overall sales and a cautious company outlook means strong earnings growth is still elusive.
Sharp's TVs, panels and solar cells have made steady progress towards profitability from the depths of the global downturn at the start of the year as governments introduce stimulus measures and consumers start loosening their purse strings.
But the yen's strength against the dollar JPY= and fierce competition from South Korean rivals such as Samsung Electronics Co (005930.KS) and LG Electronics Inc (066570.KS) continued to weigh on the company, the fourth-largest player in the global LCD TV and solar cell markets.
"It's certain that we have transformed ourselves back into a profit-making company," Sharp Executive Vice President Toshishige Hamano told a news conference on Thursday.
"But when it comes to strength in the markets, things remain quite severe. It's not like our profit will continuously balloon from here." Operating profit totalled 27.6 billion yen ($304 million) in July-September, up from a 14.3 billion yen profit a year earlier and slightly better than the average estimate of a 25.2 billion yen profit from five analysts polled by Thomson Reuters I/B/E/S.
Similarly, smaller domestic rival Sanyo Electric Co Ltd (6764.T) reported its first quarterly profit in three quarters, on cost cuts and recovering demand for PC-use lithium-ion batteries. Operating profit at Sanyo, the world's largest rechargeable battery maker, totalled 12.3 billion yen in July-September, down 35 percent on the year but beating the consensus estimate of a 9.3 billion yen profit.
MURKY OUTLOOK
For the full year to March, both Sharp and Sanyo stuck to their forecasts, citing uncertain outlook in the second half and beyond.
Sharp's annual operating profit forecast of 50 billion yen would be a turnaround from a 55.48 billion yen loss last year and above the market consensus of a 30.6 billion yen profit. Continued...
