Results for the Six Months Ended September 30, 2008
(1) Overview of Financial Results
|Amidst a challenging environment including declines in prices for digital products and electronic devices, Sharp’s main devices such as LCDs and solar cells generally continued to sell well. However, a sluggish Japanese domestic mobile phone market hurt our sales of mobile phones and wireless PDAs, which saw a drop of approximately 100 billion yen, compared to the same period last year. As a result, net sales dropped 4.8% (78.4 billion yen) to 1,562.4 billion yen, compared to the same period last year. |
Market prices have declined over the past year, which caused a decrease in sales of Consumer/Information Products by 155.3 billion yen and Electronic Components by 137.4 billion yen, for a total drop in net sales of 292.7 billion yen. The foreign exchange fluctuation also led to a drop in net sales by 63.5 billion yen.
Operating income was 50.7 billion yen, down 35.8% (28.3 billion yen) compared to the same period of last year. This can be attributed mainly to sluggish sales for mobile phones, wireless PDAs and relevant electronic components.
Net income was 28.0 billion yen, down 35.3% compared to the same period last year. A gain on sales of stocks of subsidiaries and affiliates resulting from a transfer of stock in Sharp Finance Corporation was offset by a loss on valuation of inventory in conjunction with revisions to Japanese accounting standards.
(2) Sales by Product Group
|For detailed information, please download Supplementary Data (PDF: 307KB).
Note: Sales by each product group include internal sales between segments (Consumer/Information Products and Electronic Components). Also, starting from the year ending March 31, 2009, product groupings have been recategorized and changed from the previous groupings of Audio-Visual and Communication Equipment, Home Appliances, Information Equipment, LSIs, LCDs and Other Electronic Components to Audio-Visual and Communication Equipment, Health and Environmental Equipment, Information Equipment, LCDs, Solar Cells and Other Electronic Devices.
|Sales of Audio-Visual and Communication Equipment were 676.3 billion yen, down 13.6% compared to the same period last year due to a large drop in the sale of mobile phones. |
Sales of Health and Environmental Equipment were 121.2 billion yen, down 6.2%. Among Sharp’s mainstay products, sales of refrigerators grew, though sales of air conditioners declined.
Sales of Information Equipment were 199.5 billion yen, down 10.1%. This reflects a decline in sales of wireless PDAs and other products, while sales of digital full-color MFPs were solid.
As a result, sales of the three product groups comprising Consumer/Information Products were 997.2 billion yen, down 12.1% compared to the same period last year.
|Sales of LCDs were 635.7 billion yen, up 15.6% over the same period last year, on the strength of expanded production capacity at the Kameyama No. 2 Plant. |
Sales of Solar Cells were 93.1 billion yen, up 36.4% thanks to stable procurement of silicon raw materials and growth in overseas sales.
Sales of Other Electronic Devices were 183.0 billion yen, down 5.0%, due to a decline in sales of CCD/CMOS imagers and other devices, which were affected by the slowdown in the mobile phone market.
As a result, sales of the three product groups comprising Electronic Components were 911.9 billion yen, up 12.5% over the same period last year.
(3) Operating Income by Product Group
|Operating income for Audio-Visual and Communication Equipment was 2.3 billion yen, down 85.6% compared to the same period last year, reflecting the decline in sales of mobile phones.|
Operating income for Health and Environmental Equipment was 2.0 billion yen, up 3.1 times, while operating income for Information Equipment was 14.8 billion yen, down 8.3%.
As a result, operating income for the three product groups comprising Consumer/Information Products was 19.2 billion yen, down 41.9% compared to the same period last year.
|Operating income for LCDs was 26.4 billion yen, down 29.0% compared to the same period last year. This decline can be attributed to a fall in average selling prices for small- and medium-size LCDs for mobile phones and a drastic drop in prices for large-size LCDs for TVs.|
Operating income for Solar Cells went from 5.0 billion yen in the red for the same period last year to 2.2 billion yen in the black, with an increase in income of 7.2 billion yen. This reflects improved profitability resulting from expanded raw material procurement and an increase in production.
Operating income for Other Electronic Devices was 3.9 billion yen, a decline of 64.1%, a reflection of decreased sales of electronic components due to a slowdown in the mobile phone market.
As a result, operating income for the three product groups comprising Electronic Components was 32.5 billion yen, down 24.5% compared to the same period last year.
(4) Capital Investment, Depreciation and Amortization, R&D Expenditures
|Capital investment was 166.4 billion yen, down 23.6%, depreciation and amortization was 130.3 billion yen, up 4.7%, and R&D expenditures were 102.8 billion yen, up 3.5%, all compared to the same period last year.