Sharp Corp revised its consolidated financial results forecast for the year ending March 31, 2020.
The Apple supplier cut its full-year profit forecast by 48% on Friday, as demand for technology devices took a hit from the coronavirus outbreak.
Sharp, which makes sensors, camera modules and screens for Apple’s iPhones, expected annual operating profit in the year ended in March to come in at 52 billion yen ($489 million), down from its previous forecast of 100 billion yen. Net profit is seen at 20 billion yen, down 75% from its earlier forecast of 80 billion yen.
The company, a unit of Taiwan’s Foxconn, said it has revised the forecast for net sales, operating profit, and profit attributable to owners of parent downward from the forecast it had originally announced on February 4, 2020. The reasons for the revision are based on the impacts of the infection spread of the new coronavirus since the end of January (such as production slowdown in customers’ factories for the company’s device business including displays, as well as constrained production, distribution and sales activities for the company’s product business), the increase in the retirement benefit expenses, and the reporting of the loss on valuation of investment securities.