Sharp Corp.’s shares rose in Tokyo on an improved outlook for full-year profit results, an early sign of turnaround under Taiwan’s Hon Hai Precision Industry Co., its new owner.
The stock climbed by 10.64 percent to ¥156 in Tokyo trading Wednesday. Sharp anticipates full-year operating profit and net income to “improve drastically” due to efforts to restore profitability and synergies related to its merger with Hon Hai, also known as Foxconn Technology Group, in August, the Osaka-based company said in a statement Wednesday.
Sharp’s net losses totaled ¥1.4 trillion over 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 company said its liabilities no longer exceed assets after receiving a ¥289 billion infusion.
Sharp shares are up more than 20 percent this year.
The company will post operating profit of about ¥40 billion in the year ending March, the Nikkei newspaper reported earlier Wednesday. That compares with the ¥13 billion average of 10 analyst estimates compiled by Bloomberg. Sharp didn’t disclose specific figures.
The Nikkei report was not based on an announcement by Sharp, the company said in the statement.
Results for the latest quarter will be announced Nov. 1.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.