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LCDs drive Sharp to strong sales

Posted by iMark - 2006-02-07

TOKYO — For its third fiscal 2005 quarter ended December, Sharp Corp. reported record high sales of 732 billion yen ($6.2 billion), up 12.5 percent from a year ago, and an operating profit of 44 billion yen ($371 million), up 20 percent year-to-year.
Sharp Corp. (Tokyo, Japan) said sales were driven mainly by large size LCD TVs, LCD panels, mobile phones and solar batteries.

Sales of LCD TVs 30 inches and over rose 50 percent year-over-year to 1.2 million units, accounting for over 40 percent of Sharp's LCD TV sales. While street prices declined by 30 percent, Sharp's average unit prices rose 2 percent due to the rapid shift to larger screens, according to Hiroshi Saji, corporate senior executive vice president of Sharp.

Sharp expects total LCD TV sales to surpass 4 million units in the fiscal year ending March, up 47 percent from a year earlier.

On the negative side, the semiconductor sector saw third fiscal 2005 quarter sales fall by 3 percent to 42 billion yen ($354 million), with the operating profit dropping 24 percent to 1.7 billion yen ($14 million).

A Sharp spokesman attributed the decline to a steep fall in the price of NOR flash memories for mobile phones. Sharp has a share of under 5 percent in the NOR flash market.

The spokesman added Sharp has cut flash memory production to reallocate capacity to other products.

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