Sat, Jun 04, 2011 - Page 11 News List

Sharp forecasting profits to rise on solar, LCD panels

Bloomberg

Sharp Corp, Japan’s largest LCD maker, said operating profit may rise 23 percent this year as the company boosts earnings from LCD and solar panels.

Operating profit may increase to ¥97 billion (US$1.2 billion) in the year ending March 31 from ¥78.9 billion a year earlier, the Osaka-based company said in a statement yesterday.

Sharp expects profit from its LCD business will gain 87 percent to ¥32 billion as growing demand for smaller panels used in mobile devices makes up for slower sales of large-sized panels, the company said.

Profit from solar panels may almost quadruple to ¥8 billion because of increasing demand in Japan, Sharp said.

Revenue may rise 0.9 percent to ¥3.05 trillion in the 12 months started April 1 from ¥3.02 trillion a year earlier, according to the statement.

The company resumed operations at its two biggest LCD factories in Japan on May 16 after suspending them because of a shortage of materials stemming from the March 11 earthquake and tsunami.

Separately, the Nikkei Shimbun reported yesterday that Sharp is in talks to form an LCD parts venture with Hon Hai Precision Industry Co (鴻海精密), which may be set up as early as this year.

The report said Sharp and Chimei Innolux Corp (奇美電子), a Hon Hai subsidiary, aim to set up a joint venture this year to procure glass substrates, color filters and other components used in producing LCD panels for TVs.

Sharp president Mikio Katayama declined to comment on the report.

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