Profits Cut and Forecasts Sharpened by Sharp

Profits Cut and Forecasts Sharpened by Sharp

Sharp Corporation (Sharp) has again revised down its forecast for net sales, cut operating profits, and sharpened its profit attributable to its parent company.

Sharp is a Japanese multinational corporation that designs and manufactures electronic products, headquartered in Sakai-ku, Sakai. Since 2016 it has been a subsidiary of the Taiwan-based Foxconn Group.

The company had, on February 4, sharpened its predictions down to a total net sales of JP¥2,450 billion (US$22.8 billion) for the fiscal year ending March 31, 2020.

Sharp states its reasons for the revision were based on the impacts of the infection spread of the new coronavirus since the end of January. The statement cites examples including “production slowdown in customers’ factories for the company’s device business including displays, as well as constrained production, distribution and sales activities for the Company’s product business, increase in the retirement benefit expenses and the reporting of the loss on valuation of investment securities.”

In it’s revised statement for the year ending March 31, 2020, Sharp has cut total net sales to JP¥2,270 billion (US$21.2 billion). Operating profits were slashed 48% to JP¥48 billion (US$447 million).

The revisions are as follows:

Some facts about Sharp:

• employs more than 50,000 people worldwide;
• Stock price: SHCAF (OTCMKTS) $10.82 as at May 6;
• Headquarters: Osaka, Osaka, Japan
• Parent organization: Hon Hai Precision Industry Co., Ltd. (65.93%)
  Subsidiaries: Optonica, Sharp Solar, Semex,

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Story: Profits Cut and Forecasts Sharpened by Sharp