Results for the Second Quarter Ended September 30, 2009
To enhance understanding of recent changes in our business conditions, we will explain the financial results centering on the second quarter (July to September 2009).
Fiscal 2008 saw Sharp faced with a tough business environment due to the global recession triggered by a financial crisis. In fiscal 2009 as well, despite a recovery in some areas, including consumer spending in countries like China and Japan spurred by government stimulus packages, the world remains in the midst of a continuing economic slump.
Under such circumstances, we have taken various measures to establish a structure capable of generating profits even if the difficult business conditions persist. These include making efforts to increase sales through the creation of uniquely featured products and pushing ahead with a company-wide recovery plan. Under this recovery plan, we are pursuing personnel reallocation, reorganizing our LCD plants, and reducing total costs by 200.0 billion yen in fiscal 2009.
Step-by-step improvements in sales and the reduction of total costs have resulted in Sharp successfully recording an operating income and a net income for the second quarter. Looking at results by product group, each group posted an operating income for the second quarter.
Net sales for the second quarter were 690.3 billion yen, up 15.4% from the previous quarter.
Operating income improved significantly by 53.6 billion yen to 27.6 billion yen, compared to an operating loss of 26.0 billion yen recorded in the previous quarter. Compared to the same quarter in the previous year (July to September 2008), net sales were down 15.2%, though operating income increased approx. 90%.
Net income improved 32.6 billion yen from the previous quarter (April to June 2009) to 7.4 billion yen.
Comparing the results for the first half of fiscal 2009 with those for the second half of fiscal 2008, net sales remained at about the same level, 1,288.6 billion yen. However, operating income improved from a 106.2 billion yen loss in the second half of fiscal 2008 to a 1.5 billion yen profit, an improvement of more than 100.0 billion yen.
This was the result of a company-wide recovery plan. Total costs for these six months were reduced by 119.1 billion yen compared to the same period in the previous year. This figure was 60% of our annual cost reduction target of 200.0 billion yen.
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