Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Sharp Cuts Profit Forecast on Strong Yen, LCD Prices

Don't Miss Out —
Follow us on:

Oct. 28 (Bloomberg) -- Sharp Corp., Japan’s largest maker of liquid-crystal displays, cut its annual profit forecast by 40 percent, citing the stronger yen and falling prices of panels.

Net income will probably total 30 billion yen ($367 million) in the year to March 2011, down from its previous forecast of 50 billion yen, the Osaka-based company said in a statement. Operating income, or sales minus the cost of goods sold and administrative expenses, may be about 90 billion yen, compared with an earlier forecast of 120 billion yen, it said.

Sharp, which started a new plant last year in Sakai, western Japan, slashed production of LCD panels two months ago due to slowing demand. The company will likely struggle to boost earnings as a glut for the device will likely worsen during the second-fiscal half, Shunsuke Tsuchiya, a Tokyo-based analyst at Credit Suisse Group AG, said before the announcement.

The maker of Aquos-brand TVs “appears to be wavering in a decision whether it should focus just on panel operations rather than consumer products,” the analyst said.

Sharp rose 0.2 percent to 844 yen in Tokyo trading before the announcement. The stock has lost 28 percent this year, compared with the benchmark Nikkei 225 Stock Average’s 11 percent decline.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net.

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.