Japan's Sharp expects annual op profit around $385 million: Nikkei

Reuters News
Posted: Oct 18, 2016 8:21 PM

TOKYO (Reuters) - Japan's Sharp Corp expects to post an operating profit of about 40 billion yen ($385 million) this fiscal year helped by cost cuts and a withdrawal from its loss-making North American TV business, the Nikkei newspaper said on Wednesday.

That would mark the first return to the black at the operating level in three years for Sharp, which is rebuilding under new owner Foxconn. The Taiwanese company, formally known as Hon Hai Precision Industry Co, took a two-thirds stake in Sharp in August.

Shares in Sharp jumped 6.4 percent in early trade on the report, outperforming the benchmark Nikkei average, which was flat. Sharp said it could not immediately comment on the report.

Sharp has not provided financial forecasts for the current business year ending in March 2017. At the net level, Sharp expects to slash the loss to about 40 billion yen from 256 billion yen in fiscal 2015, the Nikkei said.

The paper added that Sharp provided the internal guidance to its main lenders in a bid to secure continued support for its restructuring efforts.

(Reporting by Chang-Ran Kim; Editing by Stephen Coates)