Some 30 billion yen in losses on shareholdings and due to stock sales was partially offset by better-than expected recurring profits in its main business, the Nihon Keizai business newspaper said.

Recurring profit was expected to be 80 billion yen, 12 billion yen higher than forecasts, while revenue was to reach 2.0 trillion yen, in line with expectations, it said.

The profit increase was led by "brisk sales of small and midsize LCD (liquid crystal display) panels, as well as high-value-added products equipped with LCDs, such as flat-panel color TVs and cellular phone handsets," the paper said.

Sharp Corp. expects its profits and revenues in the year to March 2004 to rise further on continued strength in LCD-related sales, but the plan could falter due to the war in Iraq.

Sharp spokesman Yoshifumi Seki said he could not confirm the contents of the report. Sharp will announce its annual earnings on April 25.

SPACE.WIRE