Sharp Warns of Profit Slump

Consumer electronics giant cites weak sales of mobile telephones for expected 40% plunge in annual profit. Oct. 6, 2008 -- Japan's Sharp Corp. warned Monday it expects annual net profit to drop more than 40%, ending a five-year record breaking streak, due to weak sales of mobile telephones. The profit warning came as a stronger yen and a global economic slowdown darken the outlook for Japanese consumer electronic giants. Sharp forecast net earnings of 60 billion yen (US$583 million) for the year to March 2009, down 41% from the previous year's 101.92 billion yen. In July it had predicted net profit of 105 billion yen. The company cut its operating profit outlook to 130 billion yen, down from 195 billion previously projected. It lowered its sales forecast to 3.42 trillion yen from 3.60 trillion. Helped by strong demand for its... [read full story]