Sharp Lifts 6-month View On Higher-than-expected Sales; Backs Full-year Forecast

(RTTNews) - Japanese electronic equipment maker Sharp Corp. (SHCAY.PK) Wednesday revised its forecast for six months upwards, primarily due to higher-than-expected net sales. However, the company maintained its forecast for full year.

Sharp also announced that its board has entered into separate business alliance agreements with Japanese building materials and housing equipment company LIXIL Corp. (JSGRY.PK), power tool developer Makita Corp. (MKTAY.PK) and automobile parts manufacturer Denso Corp. (DNZOY.PK).

Under the agreements, Sharp would receive an approximately 5 billion yen investment from LIXIL, about 10 billion yen investment from Makita as well as about 2.5 billion yen investment from Denso.

Regarding its forecast, Sharp said it now expects net loss to be 10 billion yen or 8.52 yen per share, narrower than prior estimate of loss of 20 billion yen or 17.15 yen per share. The forecast is significantly narrower than last year's recorded net loss of 387.58 billion yen or 352.25 yen loss per share.

The company lifted its forecast for operating income to 30 billion yen from previous estimate of 15 billion yen. The prior year's operating loss was 168.90 billion yen.

Net sales for the first half is now projected to be 1.31 trillion yen, a 3.1 percent increase from previous estimate of 1.27 trillion yen, and higher than last year's 1.10 trillion yen.

The company attributed the positive revision mainly to better-than-expected sales of large-sized LCDs for TVs and solar cells as a result of increased demand in Japan for residential use and mega-solar power generation projects.

The company also experienced robust sales from health and environmental equipment and business solutions as well as steady sales from electronic devices led by camera modules for smartphones and tablet terminals.

Meanwhile, sales of digital information equipment would be lower than the previous forecast due to lower projected sales of mobile phones.

Further, Sharp maintained its forecast for the year ending March 31, 2014, with net income of 5 billion yen or 4.25 yen per share, operating income of 80 billion yen, and net sales of 2.70 trillion yen that represents an 8.9 percent increase from last year.

Sharp further said that it will continue to steadily implement previously announced medium-term management plan during the second half of the fiscal year.

In Japan, Sharp shares closed today's trading at 376 yen, up 6 yen or 1.62 percent.