...S&P Global Ratings believes Sharp's profits are likely to decrease materially in fiscal 2022 and recover only slowly thereafter. This is because the company's business structure remains sensitive to its external environment. In the LCD business, Sharp reconsolidated Sakai Display Products Corp. (SDP), a maker of large LCDs. Given falling prices of large LCD panels in the first half of fiscal 2022 (April to September 2022), we expect Sharp's LCD business to make about a Ñ25 billion operating loss through the full fiscal year. In addition, rapid depreciation of the yen has substantially cut profits from company businesses that manufacture products overseas and sell them in the domestic market, such as home appliances. Such units account for a large proportion of Sharp's entire business. The company has taken steps in response, including adjusting its use of SDP's factories and increasing overseas sales of home appliances, in addition to raising prices and cutting costs. Still, it will not...
