TOKYO Feb 1 Sharp Corp is set to post
its first operating profit in five quarters in the three months
through December, sources familiar with the matter said on
Friday, boosted by strong sales of home appliances and mobile
The rebound in earnings will bolster the consumer
electronics maker's chances for a return to profit for the rest
of the business year, which it needs to convince lenders and
shareholders, including U.S. chipmaker Qualcomm Inc,
that it is viable.
Sharp, which is due to report third-quarter results later in
the day, would post an operating profit of 2 billion to 3
billion yen ($22 million-$33 million) for the third quarter, the
sources said. The profit compares with an average 230 million
yen loss estimated by seven analysts.
A weaker yen also boosted Sharp's October-December earnings,
the sources said, adding that the company would stick with its
second-half operating profit forecast of 13.8 billion yen.
Sharp spokeswoman Miyuki Nakayama declined to comment.
Japan's largest electronics companies have in past decades
gradually ceded their market lead to lower-cost rivals from
China and Korea, like Samsung Electronics.
Sharp is fighting for survival after years of losses. The
company in November doubled its full-year net loss forecast to
In October, it secured a $4.4 billion bailout from banks
including Mizuho Financial Group and Mitsubishi
Financial Group. To secure the loans, the firm had to
mortgage its offices and factories in Japan, including one that
makes screens for Apple Inc's iPad and latest iPhone.
It also pledged to trim its workforce by 10,000 people and
sell off assets including its overseas TV assembly plants.