Japan gets good news as Sony predicts profit surge, Sharp cuts losses
Sharp's new owner Foxconn is considering a bid for the chip unit of Toshiba Corp.
Sony Corp said on Friday it expects operating profit to rise 73.2% in the year through March 2018, while Sharp Corp. reported a lower than expected loss in the year just ended as new owner Foxconn cut costs.
Sony’s outlook is helped by the reopening of an image sensor factory in southern Japan that was damaged in an earthquake. The company forecasts operating profit to rise to 500 billion yen ($4.50 billion) from 288.7 billion yen.
It would be the highest profit since a peak of 525.7 billion, set in the year through March 1998 on the back of box-office hit Man in Black as well as sales of the first PlayStation.
While a strong forecast, it’s less than the 510.58 billion yen average of 27 analyst estimates compiled by Thomson Reuters.
Liquid crystal display manufacturer Sharp booked an annual net loss of 24.9 billion yen ($224.04 million), beating expectations for a 28.4 billion yen loss by an average of nine analysts surveyed by Thomson Reuters.
In the previous year, Sharp reported a 255.97 billion yen loss. It said it will give its outlook for the current fiscal year on May 26.
Sharp Executive Vice-President Katsuaki Nomura told reporters it was considering a bid for the chip unit of beleaguered Japanese conglomerate Toshiba Corp.