Forecast for Fiscal 2008
The forecast for financial results for fiscal 2008 remains in line with the downward-revised forecast announced on October 6, 2008. We expect net sales of 3,420.0 billion yen, about the same as the previous year, operating income of 130.0 billion yen, down 29.2%, and net income of 60.0 billion yen, down 41.1%. With the current uncertainty in the world economy, we foresee a difficult management environment for the remainder of the fiscal year.
The decrease in net sales for the first half of fiscal 2008 was due mainly to the sluggish sales of mobile phones in Japan and this situation is likely to continue for the second half. However, we seek to achieve our target for the year with healthy increases in unit sales of LCD TVs, the aggressive introduction of new Blu-ray Disc recorders, and full-scale contribution from expanded production capacity at the Kameyama No. 2 Plant. Increasing sales of thin-film solar cells driven by the start of new production lines will also help us reach the target.
We are also aiming to reach our target for profits by improving profitability through company-wide efforts. We will decrease costs by innovating design and production processes, and by reviewing our supply chain and value chain, which will also lead to reduced inventory. The Spiral Strategy, centered around Sharp’s proprietary devices, will also be accelerated.
Capital investment will be 300.0 billion yen, down 4.9% compared to last year, in light of the uncertainty in the management environment.
Depreciation and amortization will be 275.0 billion yen, down 0.6%, and R&D expenditures will be 195.0 billion yen, down 0.6%.
Our assumption of exchange rates in the second half is 100 yen to the U.S. dollar and 140 yen to the euro.
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