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Sanyo Electric announced a contract with Sharp for buying liquid crystal display panels (LCD panels) to use in Sanyo flat-

screen TVs sold in North America. The two firms also suggested a future joint development of kitchen appliances. Sanyo has

bet its future on rechargeable batteries and solar cells, and is intensifying investment in these businesses amid a

disappointing performance by its consumer electronics operation. "We hope to expand our business by having a mutually

complementary relationship with Sharp," said Sanyo spokesperson Yuko Hosaka. "Sharp's strength in LCD is part of that." Sanyo

said it started procuring LCDs from Sharp in April, and would also continue procurement from other suppliers. Sanyo sold

about a million LCD TVs in North America in the business year that ended on 31 March. Sharp, the world's third-largest LCD TV

maker behind Samsung Electronics and Sony, has been trying to secure a stable source of demand for its LCD panels from rival

TV set makers as it aggressively invests in expanding output. It is planning to spend 380 billion yen to build a new LCD

plant in Japan, scheduled to start production by March 2010. Sony, Toshiba and Pioneer have said they plan to buy LCD panels

from Sharp. Sanyo announced on Thursday that it had returned to the black for the first time in four years, helped by robust

sales of rechargeable batteries and digital cameras, and said profit would jump this year on the sale of its cell phone unit.

But its traditional home electronics business, including cooking appliance and refrigerators, remained in the red.