Sharp announced FY16 Q3 results with net sales of ¥571.5bn ($5.1 mn) and net profit of ¥4.2bn ($37 mn), resulting in a net profit margin of 0.7%. The quarterly sales were lower by 13.8% as compared to FY15 Q3 sales of ¥663.3bn ($5.9 mn), while last year there was a loss of ¥24.7bn ($220 mn) in FY15 Q3. The results for the nine months of FY16 amounted to sales of ¥1491.2bn ($13.2 bn) with a net loss of ¥41.1bn ($365 mn).
The sluggish sales in the quarter were mainly due to the shift to a brand licensing business for LCD TVs in the Americas and a downturn in demand for LCD panels and camera modules among major smartphone customers. However the structural reform initiatives have resulted in significant improvements in earnings in the quarter and converted the loss into profits.
Analyst Comment
Of course, Sharp has been able to take some advantage of the higher prices in LCD panels at the moment, and likely to last for this year. (BR)
