Results for the Six Months Ended September 30, 2006
(1) Overview of Financial Results
|Net sales set a record for first half financial results, reaching 1,465.6 billion yen, up 9.7% compared to the same period last year. |
Operating income was 90.1 billion yen, up 20.1% and the operating income ratio was 6.2%.
Net income was 46.5 billion yen, up 27.5% compared to the same period last year. These figures also represent new records for Sharp.
Starting from this period, we have changed our accounting method. Previously, a royalty and technical assistance fee were included in "Other income," and the cost of the royalty and technical assistance fee was calculated in "Other expenses." However, these are currently included in "Net sales" and "Cost of sales," respectively. With this change, for the six months ended September 30, 2006, net sales are up 8.2 billion yen and operating income is up 5.9 billion yen, compared to the previous classification. However, this change has no impact on net income.
(2) Sales by Product Group*
For detailed information, please download Supplementary Data (PDF: 93KB)
*Note: Sales by Product Group include internal sales between segments (Consumer/Information Products and Electronic Components). Also, from the latter half of fiscal 2005, the IC group was renamed the LSI group, and some items previously included in ICs were allocated to Other Electronic Components. Accordingly, results of the six months ended September 30, 2005 have been reclassified.
[ Consumer/Information Products ]
Sales of Audio-Visual and Communication Equipment were 587.9 billion yen, up 14.3% over the same period last year, thanks to increased sales of large-size LCD TVs and mobile phones.
Sales of Home Appliances were 119.2 billion yen, up 6.5%, and sales of Information Equipment were 216.8 billion yen, up 2.7% over the same period last year.
As a result, sales of the three product groups comprising Consumer/Information Products were 924.0 billion yen, up 10.4% over the same period last year.
[ Electronic Components ]
Sales of LSIs were 96.3 billion yen, up 0.8% over the same period last year. Increased sales of CCD/CMOS imagers for mobile phones and digital cameras offset the sluggish sales of flash memory, maintaining overall results at the same level as the same period last year.
Sales of LCDs were 506.2 billion yen, up 25.5% over the same period last year. With an increase in capacity at the Kameyama No.1 Plant in March 2006 and the start of operations at the Kameyama No.2 Plant in August, large-size LCD panels saw a sales increase. Sales of small- and medium-size LCDs, including System LCDs, also grew steadily.
Sales of Other Electronic Components were 161.7 billion yen, up 8.5%. Increased sales of solar cells contributed to the overall sales growth.
As a result, sales of the three product groups comprising Electronic Components were 764.3 billion yen, up 18.0%.
Operating income for Consumer/Information Products was 37.1 billion yen, up 25.4%, and the operating income ratio was 4.0%, up 0.5 percentage points over the same period last year. The growth of the two product groups of Audio-Visual and Communication Equipment and Information Equipment contributed to the overall profit increase.
Operating income for Electronic Components was 55.8 billion yen, up 19.8%, and the operating income ratio was 7.3%, up 0.1 percentage point over the same period last year. The growth of LCDs and Other Electronic Components made up for a profit decline in LSIs.
(3) Capital Investment, Depreciation and Amortization, and R&D Expenditures
Capital investment was 164.8 billion yen, up 46.1% over the same period last year. Depreciation and amortization was 99.4 billion yen, up 9.0%, and R&D expenditures were 94.2 billion yen, up 1.8% compared to the same period last year.