Sharp’s printer segment posts strong growth
August 12, 2024
Sharp’s printer business thrives despite challenges in display and electronic segments.
Sharp Corporation’s printer segment has emerged as a standout performer in the first quarter of fiscal 2024, with the Smart Office division—encompassing the printer business—reporting a significant 22.9% year-on-year increase in sales to ¥155.6 billion (€925 million/ $1.02 billion).
Operating profit in this segment also soared by 168.1%, reaching ¥8.4 billion (€50 million/ $55 million), driven by strong sales of multi-function printers (MFPs), office solutions, and information displays, particularly in Europe and the U.S. This success contrasts sharply with the performance of other segments, highlighting the importance of the printer business in Sharp’s broader portfolio.
Despite the strong performance of the printer segment, Sharp’s overall financial results for the first quarter of 2024 present a mixed picture. The company’s total net sales decreased by 1.7% year-on-year to ¥531.9 billion (€3.16 billion/ $3.49 billion), while operating loss narrowed slightly to ¥5.8 billion (€34 million/ $38 million) from ¥7 billion in the previous year.
This decline was primarily due to significant challenges in the Display Device and Electronic Device segments, which saw sales drop by 26.9% and 11.9%, respectively. The Display Device segment, which includes small- and medium-sized displays, recorded an operating loss of ¥17.1 billion (€101 million/ $112 million), marking a continuation of its recent struggles.
The company’s overall profitability was also affected by non-operating factors, including a substantial foreign exchange loss of ¥7.4 billion (€44 million/ $49 million) and decreased ordinary profit, which fell to a loss of ¥10.1 billion (€60 million/ $66 million). Despite these challenges, Sharp generated some extraordinary income, including a ¥10.1 billion (€60 million/ $66 million) gain from selling investment securities, which partially offset the operational losses.
Looking forward, Sharp has maintained its full-year forecast, projecting net sales of ¥2.1 trillion (€12.5 billion/ $13.8 billion) and an operating profit of ¥10 billion (€59 million/ $66 million). The company’s management remains cautiously optimistic, particularly about the continued strength of the Smart Office division. However, ongoing issues in the display and electronic segments, along with the volatile yen, pose significant risks to Sharp’s overall performance.
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