OSAKA – Sharp Corp. is expected to record a group net profit of ¥10 billion for the April-December period, securing a net profit for the first time in three years, sources said Wednesday.
The turnaround is attributable to favorable solar battery sales, bolstered by the feed-in tariff program for encouraging the use of renewable energy sources in power generation, the sources said.
A higher operating rate at its Kameyama No. 2 plant in Mie Prefecture also contributed to boosting profit, with Sharp increasing supplies of its Igzo power-saving LCD panels to Chinese and other manufacturers, they said.
Among other notable developments, Sharp increased sales of LCD panels to its capital and business tie-up partner Samsung Electronics Co. It is also in talks with the South Korean company to supply large-size LCD panels of more than 70 inches, which carry high margins.
But sales of home electronics products could slow in Southeast Asia due to economic slowdowns. .