Sharp Corp announced on Monday that it's April-September period operating profit would fall 12.4 percent to 79 billion yen because of higher business costs and accounting changes.
If not for accounting changes, its operating profit would have fallen 5.8 percent the company said today.
According to the electric company, its first half group net profit fell 7.6 percent from a year ago.
The world's largest LCD TVs maker, however, still aims to reach its targets for the full fiscal year through March, of a group net profit of 105 billion yen, according to a spokeswoman.
Although its revenues for the first half increased 12 percent to 1.64 trillion yen, the profit was decreased due to additional depreciation of assets caused by tax law changes and soaring costs of silicon, the main material used in its solar cells. Also its new LCD TV assembly plants overseas took much cost for the launch.
Sharp is trying to cut per-unit costs by launching plants overseas. So far, the Japanese LCD maker has been less successful compared to its national operation. The firm is starting to operate its new plants in Mexico for exports to America recently. Sharp also has its LCD modules plant in Poland for exports to Europe from this year, according to Nikkei. In Japan, Sharp produces its raw LCD panels at Kameyama facility in western Japan and then incorporate those panels into LCD modules to complete TVs at various assembly plants.
Aquos, its LCD TV brand, are aimed to be shipped 9 million this fiscal year through March. Sharp will report its first half earnings on Thursday.