Sharp said its earnings were bolstered by sales of home appliances and mobile phones, along with a weaker Japanese yen that helped it compete overseas. The company added it made money from its TV business in the third quarter but forecast deeper annual losses from LCD panels due to softer demand for small and medium sized panels for smartphones.
Sharp warned that such losses may raise uncertainty about Sharp's future. In addition, the company's credit rating has been lowered to levels below investment grade, pushing the company to sell its TV-related factories as well to mortgage its offices and factories in Japan, in order to raise cash. Sharp may sell its Chinese TV assembly plant to Lenovo Group, according to earlier reports. The company is also in talks to sell a Mexico factory to Hon Hai Precision industry. The company has also striked an n agreement to accept a capital injection of up to Y9.9 billion ($120 million) from Qualcomm.
For the full-year to March, Sharp said it is maintaining its forecasts for a net loss of Y450 billion, an operating loss of Y155 billion and revenue of Y2.46 trillion.