Sharp has revised down its final profit and loss forecast for this fiscal year from a surplus of 10 billion yen to a deficit of 10 billion yen. The main factor is that the recovery in demand for LCD panels is slower than expected, and the company is expected to be in the red for the second consecutive year.
Sharp's financial results for the nine months from April to December last year announced on the 6th show that sales decreased 10.3% from the same period last year to 1,764.7 billion yen, and the final profit and loss was a surplus of 2 billion yen. have become.
On top of that, the company has revised down its earnings forecast for the current fiscal year, predicting a final profit of 10 billion yen in the red, a complete reversal from the previous 10 billion yen surplus.
Sharp had a final deficit of 260.8 billion yen in last year's financial results, and is expected to be in the red for the second consecutive year.
The company cited this as a slower-than-expected recovery in demand for small and medium-sized LCD panels for smartphones and tablets.
CEO Wu Bo-hun had promised that the company would definitely return to profitability this fiscal year, but it seems that it is taking time to rebuild the business.
At a financial results conference held online, CFO Chen Shin-xu said, ``Although we have been implementing reforms to return to profitability, we have not been able to offset the slump in demand for LCD panels.We would like to make improvements by developing new demand. ” he said.