TOKYO: Shares of Sharp surged as much as 13 percent to a one-month high on Thursday after a newspaper reported that the TV maker likely beat its own profit estimate in the October-March period, helped by restructuring steps and increased sales of LCD panels to Samsung Electronics.
The Japanese company likely generated more than 20 billion yen ($201 million) in operating profit for the second half of its financial year, beating its own estimate for 13.8 billion yen in profit, the Nikkei business daily said. Sharp suffered a loss of 71.1 billion yen in the same period a year earlier.
Sharp shares were up 8.3 percent at 313 yen in early afternoon trade after rising as high as 328 yen, their highest since March 7. The benchmark Nikkei average was up 1.2 percent.
The Osaka-based company is expected to report full-year earnings on May 14 and unveil its business plan at the same time. Sharp will outline how it will revive its business and bolster its finances, sources have said.
Bailed out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group last year, Sharp needs to raise cash before September to pay a $2.14 billion convertible bond.
Sources at Sharp and its banks have told Reuters they expect the Osaka-based company to resort to equity financing to make up any shortfall after it adds up available cashflow and gains from asset sales and cash from investors, including Qualcomm and Samsung.
Source-Times Of india