Sharp 2007 Annual Report Download - page 12

10
MESSAGE TO OUR SHAREHOLDERS
FISCAL 2006 IN REVIEW
During fiscal 2006, year ended March 31, 2007, the
Japanese economy continued to recover modestly,
supported by solid export growth and corporate
investment due to improved earnings results.
However, private consumption has remained almost
flat. Overseas, while a decelerating trend was seen in
the U.S. economy, evident in particular in a slowdown
in the housing market, the Asian economy, including
China, maintained high growth and the European
economy as a whole continued to recover steadily.
There were some bright spots in the electronics
industry, meanwhile, as digital audio-visual
equipment continued to grow, led by flat-panel TVs.
Intensifying global competition, however, led to
progressive price erosion in this growing market,
meaning there was little ground for optimism.
Under these conditions, we achieved consolidated
net sales for fiscal 2006 of ¥3,127.7 billion, up 11.8%
over the previous year, while operating income was
¥186.5 billion, up 13.9%, and net income was ¥101.7
billion, up 14.7%. Each of these financial indicators
represents a historic high for the fourth consecutive
year. (For further details of financial results, please
refer to the Financial Section on page 35.)
In Consumer/Information Products, we worked to
further expand sales of LCD TVs. Amid increasing
demand for LCD TVs around the globe, we
expanded our lineup of large-size LCD TVs,
including cutting-edge full high-definition models,
and worked toward expanding sales worldwide.
Other efforts included a release of unique products
that incorporate our proprietary device technology,
such as mobile phones capable of receiving “One
segment broadcasting,” or “One Seg,” a new type of
terrestrial digital broadcasting for mobile
equipment. In Electronic Components, we strove to
further expand our LCD business. For large-size
LCDs, we began operations at the Kameyama No. 2
Plant. This is the world’s first LCD production
facility to adopt eighth generation (8G) glass
substrates, which enables the production of 40-
inch-class and 50-inch-class LCD panels with
extremely high efficiency. We also started the
second phase at the plant, intensifying production
capacity for large-size LCDs. For small- and
medium-size LCDs, we increased sales of System
LCDs for mobile equipment, including mobile
phones. Additionally, we have taken various other
actions, such as capacity enhancement for solar
cells and creation of distinctive devices intended for
our uniquely featured products.
INITIATIVES IN FISCAL 2007
Sharp will continue to aggressively promote its one-
of-a-kind strategy in fiscal 2007 aimed at propelling
further corporate growth.
In Consumer/Information Products, we will work to
further expand our LCD TV business. By leveraging a
highly efficient worldwide production system with
the Kameyama Plant at its nucleus, we will expand
the lineup of cutting-edge full high-definition models
globally. Industry-leading one-of-a-kind products in
other business areas will also be upgraded. These
include our original proprietary mobile phones and
wireless PDAs, utilizing our unique technologies. In
Electronic Components, we will enhance our line of
Realize unabated progress to be a
“valued one-of-a-kind company”