Mixed Bag Of Results For Japanese High-Techs

July 27, 2005
Japanese electronic makers on July 27 reported mixed performances for the quarter to June as sales remained brisk but product prices kept falling longer than had been expected. Sharp posted a light dip in profits while Sanyo, which has already announced ...

Japanese electronic makers on July 27 reported mixed performances for the quarter to June as sales remained brisk but product prices kept falling longer than had been expected.

Sharp posted a light dip in profits while Sanyo, which has already announced a restructuring, was stuck in the red in the first quarter but camera and office equipment maker Canon said its profits picked up 9% in the half-year to June.

Sharp posted a net profit of 19.14 billion yen (US$170 million) in the first quarter, down 0.8% from 19.47 billion yen a year earlier. Prices for many high-tech products including LCDs (liquid crystal displays) and digital cameras have been dropping, helping boost sales in some cases but also hitting corporate profits

"Delivery prices of our small- and mid-sized LCD panels fell by an annualized rate of 15% in the first quarter, whereas we had earlier thought prices would fall by 10%," Onishi said.

The situation was far more dire for rival Sanyo, which suffered a net loss of 26.21 billion yen (US$234 million) in the fiscal first quarter, reversing a year-earlier profit of 2.33 billion yen. Domestic sales fell 15% to 272.89 billion yen and overseas sales slipped 1.8% to 296.08 billion yen. Sales in the consumer segment fell 12.2% to 273.86 billion yen as "increased competition and a decline in prices led to a decrease in digital camera sales," Sanyo said in a statement, adding domestic mobile phone sales also fell.

Canon, reported strong growth in the first half to June thanks to brisk sales in digital cameras, LCD parts and other mainline businesses. Canon said its net profit grew 9.0% to 175.3 billion yen (US$1.56 billion) while sales increased in all three major markets -- Japan, North America and Europe.

Copyright Agence France-Presse, 2005

Popular Sponsored Recommendations

Sprint Implementation for Digital Transformation

Feb. 1, 2024
Discover a revolutionary approach to digital transformation. Uncover the flaws in current methods that cause 70% project failure rate. Learn how sprint implementation can maximize...

How Technology is Reshaping Manufacturing: Trends in 2024 and Beyond

Feb. 26, 2024
Explore how technology reshapes manufacturing in our webinar. Uncover solutions to operational inefficiencies, talent shortages, and sustainability challenges. Transform obstacles...

The Customer Is Still King! Improving Service to Maximize Revenue, Reduce Costs, Boost Loyalty!

Feb. 26, 2024
Join this webinar to learn how to deliver frictionless customer service (CX) amid changes to supply chains, unpredictable buyer demand, and the adoption of automation and AI.

S&OP Optimization: Data-driven Strategies to Achieve Sustainable Profitability

Feb. 6, 2024
Through collaborative S&OP, manufacturers can balance demand and supply effectively, optimize resources, and capitalize on emerging market opportunities. Learn how to maximize...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!