TOKYO May 12 Sharp Corp booked a net
profit of 11.6 billion yen ($114.05 million) for the year ended
March 31, meeting the conditions for a $4.6 billion rescue
arranged by banks last year after the company recorded a 545
billion yen loss in the previous year.
It said it was aiming to log a 30 billion yen net profit in
FY2014/15, but forecast a drop in operating profit in the
current business year to next March as the benefit of a weaker
yen over the past year recedes while a pull-back in production
of solar cells will also clip profits.
Sharp forecast a 7.9 percent decrease in operating profit to
100 billion yen ($983.19 million) for the current year through
March 2014, just above market consensus of 98.7 billion yen, the
mean of 15 analyst estimates according to Thomson Reuters'
The forecast was 10 percent lower than the figure that Sharp
forecast in its three-year management plan last year. The
company said a fall in domestic spending after a consumption tax
hike in April was also expected to hit revenue this year.
Sharp forecast further growth in its LCD panel business,
forecasting a 32.2 percent increase in operating profit to 55
billion yen in the current year.
The company said it would work on increasing the proportion
of smartphone and tablet screens at its Kameyama 2 factory to 50
percent in the six months to September from 28 percent in the
The company's equity ratio was at 8.9 percent on March 31 of
this year, down from 13.9 percent at the end of last December
and still well off the 20 percent considered to be a healthy
Sharp's shares have fallen 22.4 percent this year, against a
13.1 percent drop in the benchmark Nikkei. They ended
flat at 259 yen on Monday ahead of the earnings release.
($1 = 101.71 Japanese yen)
(Reporting by Sophie Knight; Editing by Matt Driskill)