Business / Corporate

Sharp logs half-year net profit, first in four years

Kyodo

Sharp Corp. on Friday reported a group net profit of ¥4.74 billion in the April-September half, returning to the black on a half-year basis for the first time in four years as gains on securities sales helped offset the costs of restructuring its unprofitable European operations.

The net profit compares with a loss of ¥4.33 billion in the same period last year. The struggling electronics maker, however, saw consolidated operating profit drop 13.6 percent from the year before to ¥29.22 billion, partly because demand for appliances was hit by the first stage fo the consumption tax hike in April.

Group sales fell 1.1 percent to ¥1.33 trillion.

For the full year ending next March, Sharp said it expects a consolidated net profit of ¥30 billion, up 159.5 percent from the previous year, and an operating profit of ¥100 billion, down 7.9 percent.

It lowered its sales outlook to ¥2.9 trillion from the initially projected ¥3 trillion.

Under austerity measures led by President Kozo Takahashi, Sharp has been cutting costs and pulling out of unprofitable businesses after posting a record group net loss of ¥545.35 billion in fiscal 2012.

Sharp has closed its solar cell business in Europe and also announced in September that it signed agreements on licensing its brand to Slovak and Turkish firms to make and sell home appliances in Europe.

In the latest earnings report, the company said it booked ¥5.7 billion in extraordinary losses as structural reform costs linked to its household appliance business in Europe.

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