Dow Jones Newswires: Sharp shares tumble as electronics maker projects 32% drop in net profit

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Sharp Corp.
6753,
-6.26%

shares fell sharply Thursday morning after the electronics maker projected a 32% drop in fiscal-year net profit, citing a deterioration in the market for large liquid-crystal-display panels.

The company’s shares were recently 7.3% lower at 1,007 yen after falling as much as 8.7% earlier.

Sharp said Wednesday after market close that it expects net profit to drop to Y50.00 billion ($372.4 million) for the fiscal year ending March 2023 from Y73.99 billion the previous fiscal year. It forecasts that revenue will rise to Y2.700 trillion from Y2.496 trillion.

The Japanese unit of Foxconn Technology Group
2354,
+0.35%

said it has factored in the impact of COVID-19 lockdowns in China and the earnings outlook of Sakai Display Products Corp., a display affiliate that Sharp plans to fully acquire.

Sharp said it is expecting the impact of supply-chain disruptions to continue, and the costs of chips and raw materials to remain elevated for now.

The Topix subindex for electronics makers was recently 0.7% lower and the Nikkei Stock Average
NIK,
+0.16%

was down 0.1%.

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