Sharp Forecasts Results Shortfall

Sharp confirmed this week that its financial results for the year ending in March 2015 are expected to fall short of the company’s last forecast in October. The company was responding to claims in the Nikkei that Sharp would record a loss for this year, reversing the company’s forecast of an annual profit.

In a statement, Sharp said that it was working on a new forecast, which the company will disclose when it is finalised. However, Sharp acknowledged that lower profitability in Japan due to rapid fluctuation of the yen and factors such as increasing competition in the LCD business, would cause a shortfall in its results.

In separate news, Sharp is reported to have scaled down production of small and medium sized IGZO panels at its Kameyama No 2 plant by around 40%, compared with the end of December. The plant currently handles 1,200 glass substrates a day which will be reduced to 700 to 800 substrates for the time being, depending on sales and inventory levels. 

Sharp is also expected to start supplying panels from its Kameyama No 1 plant to Chinese smartphone manufacturers. Output from the No 1 plant has until now been exclusively for Apple devices, though Apple is reported to have given its permission for panels made at the plant to be supplied to other companies.