The share price of electronics company Sharp rose strongly today (May 13th) on the back of the latest financial results revealed by the firm, which showed it has returned to profit.
Sharp has faced a difficult period over the course of the last few years but the future is now looking brighter for the Japanese company after it said it made a net income of 11.6 billion yen (£67 million) for the financial year to the end of March.
Profits were double Sharp's own analysis and this is the first time in three years that the company has been able to finish the year in the black.
In the current financial year, Sharp stated that it is now expecting its net profit to triple to 30 billion yen and investors responded positively to this announcement, with shares in the firm rising by 7.7 per cent at one point in the wake of the news.
The weak value of the yen compared to global rivals in the last 12 months has been good news for Sharp. Asian exporters typically perform much better when the yen is in a weak position against the US dollar and other major currencies from around the world.
Sharp is the largest electronics manufacturer in Japan and is the firm responsible for the liquid-crystal displays used in many of the top smartphones, such as the iPhone from Apple.
A spike in sales was recorded by Sharp at the end of the financial year, as consumers rushed to pick up a bargain before a new sales tax was rolled out on April 1st, reports BBC News.
In a statement, Sharp said it has responded to its testing financial situation in the last few years by pushing boundaries regarding the products it is able to manufacture, citing 4k ultra high definition televisions as one of the areas it has had success with in recent months.
Sharp has also announced that two of its directors – Satoshi Fujimoto and Toshihiko Fujimoto – are to step down from the company's board.
Learn about the Asian markets and CFD trading at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.