Japan's Sharp swings to solar op loss in fiscal Q1

Sharp Corp’s (TYO:6753) energy solutions unit, or solar cell business, turned to an operating loss of JPY 3.97 billion (USD 32m/EUR 29m) in April-June 2015 after sales fell by 46.6% year-on-year.

The year-ago operating result was a profit of JPY 183 million. Net sales fell to JPY 36.89 billion in the reporting period (Sharp’s first fiscal quarter) from JPY 69.04 billion in the same three months of fiscal 2014/15.

The company explained that there was a decline in sales of both residential- and industrial-use products, reflecting a downturn in the home market. The disposal of Sharp’s US solar project unit Recurrent Energy to Canadian Solar earlier in the year also led to lower sales. In addition, reserves to cover the difference in the long-term and the current lower market price for polysilicon affected the energy solutions' profitability.

Sharp said it aims to strengthen its sales of residential solar power generation systems and expand its solution businesses such the storage battery and engineering, procurement and construction (EPC) activities. It would also target cost reductions by revamping the supply chain for photovoltaic (PV) modules procured abroad.

(JPY 100 = USD 0.805/EUR 0.735)

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