Electronics giant posts eightfold rise in operating profit amid restructuring drive.
Sharp Corporation reported a sharp increase in operating profit despite a decline in overall revenue, as cost-cutting measures and restructuring efforts bore fruit. The Japanese electronics group recorded an eightfold rise in operating profit for the third quarter of fiscal 2024, reaching ¥19.9 billion ($134 million/ €125 million), despite a 7.4% year-on-year drop in net sales to ¥561.5 billion ($3.8 billion/ €3.6 billion).
The gains were driven by strong performances across Sharp’s Brand Business divisions, which include smart office and consumer electronics. The Smart Office segment, encompassing printers and MFPs, saw a 9% increase in sales to ¥163.8 billion ($1.1 billion/ €1.03 billion), supported by demand for high-end PCs and lifecycle management services. Universal Network, which includes TVs and mobile devices, posted a 20.5% jump in revenue.
However, the Device Business struggled, with sales tumbling 33% year-on-year. Electronic device sales were hit hardest, plummeting 67.6%. The display division, while narrowing losses, remained in the red. The company also faced headwinds from foreign exchange losses and restructuring expenses linked to its “Asset Light Initiatives”.
Despite these challenges, Sharp revised its full-year forecast upwards, expecting to turn a net profit for the first time since 2021. The firm cited further cost efficiencies and a strategic shift towards high-margin product lines as key drivers for future growth.
