OSAKA – Sharp Corp. on Tuesday raised its net profit outlook for the current business year due to cost-cutting, and despite lowering its sales forecast.
Sharp cut its sales projection for the year through March to ¥2.69 trillion ($24 billion) from a previous estimate of ¥2.89 trillion, reflecting a decline in television sales in China and logistics disruptions following a typhoon.
But the Osaka-based electronics maker raised its group net profit projection to ¥90 billion from the previous estimate of ¥80 billion.
As its logistics network was disrupted by a powerful typhoon that hit Japan in September, shipments of liquid crystal displays and the procurement of smartphone parts were delayed.
Still, Sharp remains on a recovery path as it continues to benefit from restructuring since it came under the wing of Taiwan-based Hon Hai Precision Industry Co. in 2016.
Sharp projects an operating profit of ¥112 billion, up from ¥110 billion forecast previously.
The latest net and operating profit outlooks represent respectively rises of 28.2 and 24.3 percent from the previous business year.
Given the TV sales decline in China, Sharp said it aims to shift its business strategy from “quantity to quality” by adding value to its products using artificial intelligence.
For the first half to September, Sharp posted a consolidated net profit of ¥40.93 billion, up 17.8 percent from a year earlier, remaining in the black for the second year.
It logged an operating profit of ¥47 billion, up 15.9 percent, on group sales of ¥1.13 trillion, up 1.2 percent.