Japanese electronics maker Sharp lowered its full-year forecast to bring it closer to market expectations after its quarterly profit dropped 24 per cent, hurt by sluggish demand for liquid crystal display panels and a strong yen.
Sharp relies on foreign markets for about 50 per cent of its sales and, like other Japanese exporters, has seen the yen's strength erode the value of its overseas earnings. The yen is hovering near a 15-year high against the dollar.
The company, which competes with Samsung Electronics and LG Display in LCD panels, also had to cut production rates at a state-of-the-art panel plant earlier this year, hurting profits.
The maker of Aquos LCD TVs posted an operating profit of 20.9 billion yen ($256 million) for July-September quarter, versus a 27.6 billion yen profit a year earlier and roughly in line with market expectations.
For the financial year to March, Sharp cut its operating profit outlook to 90 billion yen from 120 billion yen, lower than the consensus for an annual profit of 94.7 billion yen, according to a survey of 24 analysts by Thomson Reuters I/B/E/S.
Sharp is also the world's third-largest producer of solar cells by shipments, after First Solar and Suntech Power.
Shares of Sharp have fallen about 28 per cent in the year to date, underperforming a 5.9 per cent fall in the broader electrical machinery index. Its stock closed 0.24 perc ent higher at 844 yen in Tokyo today.
Reuters