Sharp Corp projected earn net profit after four-year loss

Tinuku ~ Japanese company Sharp Corp is projected to officially earn its first net profit after 4 years and after getting a cost cut under the new owner of Taiwanese company Hon Hai Precision Industry Co Ltd aka Foxconn and said it will continue investing actively.

Tinuku Sharp Corp projected earn net profit after four-year loss

Foxconn has assisted Sharp Corp's operations as a manufacturer of liquid crystal displays (LCDs) totaling US$3.6 billion last year. Sharp now wants to invest on a growth base in the future.

Sharp Corp. has teamed up with Foxconn to bid Toshiba Corp. for chip technology. Earlier sources said last week the company would communicate with SoftBank Group Corp for US$1 billion.

"We have joined the tender with Toshiba but we can not comment further, it is in the process of negotiating," said Sharp CEO Tai Jeng-wu in a briefing.

Toshiba is the world's second-largest NAND chip maker that relies on the sale of these devices to cover billions of dollars due to bankruptcy of bids with the United States on nuclear chips.

Tai says Sharp wants to build an LCD factory in America, if conditions are met and competitiveness is assured.

"The United States is the biggest panel market, but there are no factories there," Tai said.

The LCD maker forecast a net profit of 59 billion yen (US$530 million) this year through March, reversing a loss of 24.9 billion yen a year earlier.

Sharp released its first part-time business plan since the acquisition of Foxconn which targets a profit of 150 billion yen by the end of 2020. The figure will be compared with the 62.5 billion yen achieved in March.