Japanese group posts first-quarter turnaround as PC and printer sales offset declines.
Sharp has swung back into the black in its latest quarter, posting a sharp rise in profits despite a double-digit fall in sales, as robust demand for personal computers and office printers offset weakness in consumer electronics.
The company reported an operating profit of ¥15.3 billion ($106 million/ €97 million) for the three months to June, compared with a loss of ¥5.8 billion ($40.1 million/ €37.0 million) a year earlier. Net profit came in at ¥27.2 billion ($188.1 million/ €166.0 million), reversing a ¥1.2 billion ($8.3 million/ €7.3 million) loss in the same period last year. Revenue fell 11.2% year-on-year to ¥472.4 billion ($3.27 billion/ €3.01 billion), hit by a stronger yen, tariff headwinds and subdued demand for white goods and televisions.
Sharp’s Smart Workplace division, home to its multi-function printers, booked flat sales of ¥189.3 billion ($1.31 billion/ €1.16 billion) but a 39.6% jump in operating profit to ¥14.2 billion ($98.2 million/ €86.7 million), helped by growth in Japan, the US and Europe. However, competition in overseas printer markets remained fierce.
The company also narrowed losses in its Display Devices segment, aided by higher sales for PC, tablet and automotive applications. Its Brand Business, which includes consumer appliances, saw operating profit climb by around 50% despite lower sales.
Boosted by the first-quarter performance, Sharp upgraded its full-year forecast, now expecting operating profit of ¥30 billion ($208 million/ €190 million). Sales are projected at ¥1.87 trillion ($12.94 billion/ €11.92 billion).
