Japan's Sharp expects lower net profit on shareholding losses

TOKYO (AFP) Apr 04, 2003
Japanese hi-tech company Sharp cut its net profit forecast for the year to March by five billion yen (42 million dollars) to 32 billion yen as a stock market slump hit the value of its shareholdings.

But the firm raised its recurring and operating profit projections for the financial year just ended thanks to strong sales of liquid crystal display (LCD) televisions and mobile phones.

A drop in share prices -- which saw the Nikkei-225 average of the Tokyo Stock Exchange lose almost 30 percent in value during the year -- triggered an extra 29.6 billion yen in extraordinary losses on the firm's share portfolio.

But the grim news was offset by forecast upgrades in other areas.

Sharp Corp.'s recurring profit is now expected to hit 81 billion yen from 68 billion yen seen previously, while its operating profit is seen rising to 99 billion yen from 90 billion yen.

Its forecast revenue to March was maintained at 2.0 trillion yen.

SPACE.WIRE