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Sharp's H1 profit better than expected but cuts outlook

Published 10/28/2010, 03:10 AM
Updated 10/28/2010, 03:16 AM

TOKYO, Oct 28 (Reuters) - Japanese electronics maker Sharp Corp reported a better-than-expected rise in half-year profit on Thursday but cut its full-year forecast on sluggish demand for liquid crystal display panels.

The maker of Aquos LCD TVs posted an operating profit of 43.48 billion yen ($532.2 million) for the April-September period, versus a 1.57 billion yen profit a year earlier.

The latest result compares with the average forecast of a 42.6 billion yen profit in a poll of three analysts by Thomson Reuters I/B/E/S.

For the full financial year to March, Sharp cut its operating profit outlook to 90 billion yen from 120 billion yen.

The company's forecast is lower than market expectations for an annual profit of 94.7 billion yen, according to a survey of 24 analysts by Thomson Reuters I/B/E/S.

Sharp relies on foreign markets for about 50 percent of its sales, and like other Japanese exporters has seen the yen's strength erode the value of its overseas revenue. The yen hit a 15-year high against the dollar on Monday.

Sharp, which competes with Samsung Electronics and LG Display in LCD panels, also had to cut production rates at a state-of-the-art panel plant earlier this year, hurting profits.

Shares of Sharp have fallen about 28 percent in the year to date, underperforming a 5.9 percent fall in the broader electrical machinery index. Its stock closed 0.24 percent lower at 844 yen in Tokyo on Thursday. (Editing by Michael Watson)

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