Sales and Operating Income by Product Group
Sales of each product group include internal sales between segments (Product Business / Device Business)
Consumer Electronics | (Billions of Yen) |
*The sub total of "Digital Information Equipment," "Communications," and "Health and Environmental Equipment" is shown as "Consumer Electronics."
| |
FY2014 |
FY2015 |
| 1Q |
1Q |
Change
(Y on Y) |
Full Year Forecast |
Change
(Y on Y) |
| Sales |
250.1 |
201.9 |
-19.3% |
950.0 |
-3.3% |
| |
Digital Information Equipment |
97.8 |
70.3 |
-28.1% |
370.0 |
-11.4% |
| Communications |
70.1 |
56.8 |
-18.9% |
240.0 |
-3.9% |
| Health and Environmental Equipment |
82.1 |
74.7 |
-9.0% |
340.0 |
+7.9% |
| Operating Income (margin) |
5.7
(2.3%) |
-11.7
(-5.8%) |
-
|
22.0
(2.3%) |
+15.3%
|
| |
Digital Information Equipment |
-5.3 |
-17.3 |
- |
-3.0 |
- |
| Communications |
7.9 |
4.9 |
-37.8% |
11.0 |
-30.2% |
| Health and Environmental Equipment |
3.1 |
0.7 |
-77.4% |
14.0 |
-12.1% |
Sales for Consumer Electronics decreased by 19.3% to 201.9 billion yen, compare to the same period last year. Operating loss was 11.7 billion yen. Sharp organized Consumer Electronics in order to take advantage of the company’s strengths in having TVs, white goods, and communications businesses and to create user-friendly products that integrate communications functions into consumer electronics. We will accelerate creation of new products and businesses utilizing our proprietary technology to improve profitability as early as possible.
Digital Information Equipment
Sales for Digital Information Equipment decreased by 28.1% to 70.3 billion yen, even as LCD TV sales in Japan expanded. This fall was due to factors including a change in LCD TV business operation to the license business in Europe accompanying the structural reforms, as well as to intensifying competition in the U.S., and economic downturn in China.
Operating loss was 17.3 billion yen as a result of a decline in sales and intensifying price competition, as well as structural reform implemented ahead of schedule such as measures to liquidate distribution inventory in China.
We will steadily implement structural reform in order to return to profitability as soon as possible, including forming alliances with other companies on LCD TV business in the Americas.
Communications
Sales for Communications decreased by 18.9% to 56.8 billion yen and operating income declined by 37.8% to 4.9 billion yen. This is as a result of factors such as the release timing of new tablets and intensifying competition in the Japanese mobile phone market, sales and operating income were down compared to the same period of the previous year. However, we managed to achieve an 8.7% operating income margin.
We will strive to secure increased sales, and profit by continuing to develop “Emopa”, Sharp’s proprietary voice-activated digital assistant, and strengthening new products with enhanced specifications, such as cameras and displays.
Health and Environmental Equipment
Sales for Health and Environmental Equipment decreased by 9.0% to 74.7 billion yen and operating income declined by 77.4% to 0.7 billion yen. In Japan, sales of seasonal products were sluggish due to unseasonable weather, while in China intensifying competition contributed to lower air purifier sales. As well, a weak yen hurt profitability in Japan.
We will increase sales and improve profitability by creating and expanding sales of uniquely featured products and models that will excite new demand. Also, we will strengthen sales structure and introduce new local-fit products in ASEAN countries.
Energy Solutions | (Billions of Yen) |
| |
FY2014 |
FY2015 |
| 1Q |
1Q |
Change
(Y on Y) |
Full Year Forecast |
Change
(Y on Y) |
| Sales |
69.0 |
36.8 |
-46.6% |
180.0 |
-33.5% |
| Operating Income
(margin) |
0.1
(0.3%) |
-3.9
(-10.7%) |
-
|
5.0
(2.8%) |
-
|
Sales for Energy Solutions decreased by 46.6% to 36.8 billion yen and operating loss was 3.9 billion yen. Both sales and operating income decreased due to slow demand in Japan for residential- and industrial-use products and absence of performance of a solar power generation developer in the U.S., which used to be our subsidiary but was sold last fiscal year. The figures of the same period last year include sales of approx. 15.8 billion yen and operating income of approx. 2.6 billion yen, which were brought by this subsidiary.
Also, there was the additional appropriation of a reserve of 2.2 billion yen to cover the difference in the long-term contracted price and the current lower market price for polysilicon, resulting in a widened loss.
We are working towards turning to the black this fiscal year through efforts including reducing fixed costs through continuing structural reform, and stepping up the solution business.
Business Solutions | (Billions of Yen) |
| |
FY2014 |
FY2015 |
| 1Q |
1Q |
Change
(Y on Y) |
Full Year Forecast |
Change
(Y on Y) |
| Sales |
79.9 |
80.6 |
+0.8% |
350.0 |
+1.9% |
| Operating Income
(margin) |
7.7
(9.7%) |
6.8
(8.4%) |
-11.9%
|
33.0
(9.4%) |
+5.4%
|
Sales for Business Solutions were 80.6 billion yen, on par with the same period last year. While sales of information displays were lower than the same period last year, sales for color MFPs grew overseas. Operating income decreased by 11.9% to 6.8 billion yen, due to price decline in services as a result of intensifying competition. But we managed to achieve an 8.4% operating income margin.
We will strengthen the office solution business around a nucleus of large-size displays, MFPs, and tablets, to increase sales and profit.
Electronic Components and Devices | (Billions of Yen) |
*The "Electronic Devices" product group was renamed the "Electronic Components and Devices."
| |
FY2014 |
FY2015 |
| 1Q |
1Q |
Change
(Y on Y) |
Full Year Forecast |
Change
(Y on Y) |
| Sales |
58.9 |
131.7 |
2.2-fold |
480.0 |
+8.7% |
| Operating Income
(margin) |
-3.5
(-5.9%) |
2.8
(2.2%) |
-
|
10.0
(2.1%) |
14.8-fold
|
Sales for Electronic Components and Devices were 131.7 billion yen, a 2.2 times increase compared to the same period last year. Sales of camera modules for mobile devices increased significantly, contributing to an increase in sales. Operating result was back in the black to 2.8 billion yen, thanks to positive effects from structural reform and cost cutting measures.
We will improve profitability by expanding sales activities for unique devices such as high-performance camera modules for smartphones and tablets, and touchscreen controllers.
Display Devices | (Billions of Yen) |
*The "LCDs" product group was renamed the "Display Devices."
| |
FY2014 |
FY2015 |
| 1Q |
1Q |
Change
(Y on Y) |
Full Year Forecast |
Change
(Y on Y) |
| Sales |
206.9 |
187.8 |
-9.2% |
1,000.0 |
+10.2% |
| Operating Income
(margin) |
2.1
(1.0%) |
-13.7
(-7.3%) |
-
|
45.0
(4.5%) |
75.8-fold
|
Sales for Display Devices decreased by 9.2% to 187.8 billion yen and operating loss was 13.7 billion yen; even as sales to major smartphone manufacturers continued strong, slower growth and increased competition in the China smartphone market had a negative impact on sales performance. To respond to such market changes, planned production adjustments for mobile device application LCDs were made.
We will build a stable supply system for in-cell type touch displays, for which mass-production began in June 2015, while at the same time strengthening support capability for our important clients by enhancing marketing organization in China’s Huanan county and recruiting local workforce. We are also striving for increased sales and improved profitability through supply chain management innovations for the entire value chain.