Sharp Shares Climb on Improved Prospects for Full-Year ProfitsBy
Shares climb as much as 11% in Tokyo, most in two months
Reforms and partnership with Foxconn help profitability
Sharp Corp.’s shares rose in Tokyo on an improved outlook for full-year profit results, an early sign of turnaround under its new owner Foxconn Technology Group.
The stock climbed as much as 11 percent to 156 yen in Tokyo trading. Sharp anticipates full-year operating profit and net income to improve “improve drastically” due to efforts to restore profitability and synergies related to its merger with Foxconn in August, the Osaka-based company said in a statement Wednesday.
Sharp’s net losses totaled 1.4 trillion yen ($13.4 billion) in the past five years after its bet on LCD TVs backfired and demand for smartphone screens slowed. Earlier this year, Sharp accepted a rescue package from Foxconn, ending a takeover battle that spanned four years. In August, the Japanese company said its liabilities no longer exceed assets after receiving a 289 billion yen infusion. Sharp shares are up more than 20 percent this year.
The company will post operating profit of about 40 billion yen in the year ending March, the Nikkei newspaper reported earlier on Wednesday. That compares with 13 billion yen average of 10 analyst estimates compiled by Bloomberg. Sharp didn’t disclose specific figures.
The Nikkei report wasn’t based on an announcement by Sharp, the company said in the statement. Results for the latest quarter will be announced Nov. 1.