Sat, Apr 29, 2017 - Page 10 News List

Sharp’s full-year loss shrinks 90% after Hon Hai deal

AFP, TOKYO

Sharp Corp yesterday said its full-year net loss shrank by 90 percent and it swung to operating profit on structural reforms after being acquired last year by Hon Hai Precision Industry Co (鴻海精密).

Hon Hai, better known as Foxconn Technology Group (富士康), in August last year acquired the Japanese industrial mainstay pummeled by huge losses and mounting debts, taking a 66 percent stake for US$3.7 billion.

Sharp said that for the latest fiscal year to the end of last month, its net loss shrank to ¥24.9 billion (US$224 million) from ¥256.0 billion a year earlier.

Sales fell 16.7 percent to ¥2.1 trillion, but the Osaka-based firm booked an operating profit of ¥62.5 billion, reversing the previous year’s loss of ¥162 billion.

The smaller net loss and operating profit turnaround was partially due to structural reforms, including cost-cutting, Sharp said.

Recoveries and improved profitability in several businesses, including display devices and air conditioners, also contributed, it said.

It did not announce its forecast for the current fiscal year that ends in March next year.

Separately, Sony Corp said it is on track to report its highest annual operating profit in 20 years owing to strong sales in its smartphone component business and PlayStation console division.

The once all-conquering company, which has been emerging from a painful restructuring, said it expects its operating profit to hit ¥500 billion in the year to March next year, which would be its best figures since a ¥525.7 billion operating profit in 1998.

Net profit this year would more than triple to ¥255 billion, Sony said.

Revenue is expected to grow 5.2 percent to ¥8.0 trillion, backed by strong sales of image sensors, which are key components in smartphone cameras as well as other electronics.

Sony said its bottom line also benefited from a one-time gain on the sale of a manufacturing subsidiary in China, as well as insurance recoveries linked to a pair of deadly earthquakes in Japan last year.

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