Sharp Corp. that had secured a combined 360 billion yen (US$3.673 billion) in loans from its two main banks in September last year on a condition that it would turn an operating profit in the second half, likely generated slightly more than 20 billion yen (US$204 million) in group operating profit in the FY12 2nd half (October-March 2013), surpassing the standing projection of 13.8 billion yen (US$140.8 million). It cut labor costs in the second half by offering early retirement packages to about 3,000 workers and lowering the salaries and bonuses of remaining employees.
The firm slashed fixed costs by holding down capital outlays, and improved its bottom line by reducing LCD panel and electronics parts inventories. The company also benefited from stronger sales of smartphones that use its proprietary IGZO power-saving LCD panel. A capital tie-up with Samsung Electronics also helped the company raise LCD panel sales to the Korean group. For the full year ended in March, Sharp likely suffered an operating loss of more than 140 billion yen (US$1.428 billion), compared with a 37.5 billion yen (US$382.6 million) loss a year earlier, but has returned to the black in the 2nd half.