Thursday, April 11, 2013
Sharp Seen Beating Op Profit Projection For FY12 2nd Half
OSAKA (Nikkei)--Sharp Corp. (6753) likely generated slightly more than 20 billion yen in group operating profit in the October-March period, surpassing the standing projection of 13.8 billion yen, thanks to such factors as payroll cutbacks and increased sales of LCD panels to Samsung Electronics Co.
The company secured a combined 360 billion yen in loans from its two main banks in September, on condition that it would turn an operating profit in the second half. Sharp suffered an operating loss of 71.1 billion yen in the same period a year earlier.
It cut labor costs in the second half of fiscal 2012, which ended last month, by offering early retirement packages to about 3,000 workers and lowering the salaries and bonuses of remaining employees. The firm slashed fixed costs by holding down capital outlays, and improved its bottom line by reducing LCD panel and electronics parts inventories.
Sharp also benefited from stronger sales of smartphones that use its proprietary IGZO (indium-gallium-zinc oxide) power-saving LCD panel. A capital tie-up with Samsung Electronics helped by raising LCD panel sales to the Korean group. And the company enjoyed brisk sales of refrigerators and other white goods in Southeast Asia.
After recording its fourth consecutive quarterly operating loss in the July-September period, Sharp reported a profit the following quarter. It appears to have ended the first quarter of 2013 in the black as well.
For the full year ended in March, Sharp likely suffered an operating loss of more than 140 billion yen, compared with a 37.5 billion yen loss a year earlier.
How big a bounce are we going to get on this...Just peeked at Sharp trading tonight in Japan-UP BIG (¥393 +¥58 or up 17.31%=$3.98 USD)!! Can't wait to see where it goes Monday morning...wondering......stay in till May or cash out now?