Sharp says October-December profit better-than-forecast, Hon Hai talks ongoing

Mon Jan 7, 2013 2:08am EST
 
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OSAKA, Japan (Reuters) - Sharp Corp had a better-than-expected operating profit for October-December, its top executive said on Monday, as the struggling Japanese consumer electronics giant scrambles to generate profits in the hopes of securing fresh financing.

The maker of Aquos brand TVs is projecting an operating profit in the October-March second half of its business year. That would unlock additional funds from banks, after the company won a $4.4 billion bailout from its lenders in October.

Sharp warned in November that it might not be able to survive on its own after doubling its full-year net loss forecast to $5.6 billion.

The October-December operating profit was bigger than planned, thanks mostly to higher revenue from large household appliances and a slight pickup in LCD TV sales, Sharp's president Takashi Okuda told a group of reporters in Osaka.

Sharp posted an operating loss of 24.5 billion yen ($278 million) in October-December 2011.

Okuda's comments came after the trading close on Monday. Sharp ended 4.4 percent lower, versus an 0.8 percent loss in the benchmark Nikkei average.

Sharp shares lost more than half their value in the 2012 calendar year, against a 23 percent rise in the Nikkei index.

HON HAI

Okuda also said the consumer electronics maker was still in talks with Taiwan's Hon Hai Precision Industry Co Ltd on getting a capital investment.   Continued...