Sharp sees first profit in two years

sharp2Sharp posted its first quarterly net profit in over two years as the Japanese LCD maker pressed ahead with cost-cutting measures under its new Foxconn owners.

Sharp raised its operating profit forecast to $329.85 million for the year ending in March from an earlier forecast of $227 million.

Net profit was $37,136,400 for October-December, compared with a $218,348,000 loss in the same period a year earlier. It was the first profit on a net basis since July-September 2014.

The return to profit comes as Sharp uses Foxconn’s mighty parts procurement power, reviewed the lineup of products and implemented various measures to cut fixed costs.

Sharp also benefited as production cutbacks by Korean rivals in LCD panels for television sets fuelled an industry-wide shortage of panels and pushed up market prices.

Its core display device unit posted an operating profit of 11 billion yen, against a 11 billion yen loss a year prior, swinging back to profit for the first time in two years.