Sharp solar segment posts USD 66m op loss in Q2, cuts FY 2012/13 outlook

Nov 1, 2012 - Japanese electronics group Sharp Corp (TYO:6753) today booked JPY 5.3 billion (USD 66m/EUR 51m) in operating loss in its solar segment for the second fiscal quarter through September and cut the full-year outlook for the business.

The company attributed the loss to the further fall in prices overseas amid worsened business conditions and intensified competition. For comparison, first-quarter operating loss was JPY 6.9 billion. Sharp did not provide year-on-year comparative figure.

Solar cell and module sales decreased by 13.7% on the year to JPY 51.1 billion. Sales volume fell 9.1% to 289 MW.

First-half segment sales dropped 15.8% on the year to JPY 93 billion and sales volume slided 6.1% to 542 MW. Operating loss came in at JPY 12.3 billion.

The group plans to expand product sales in Japan and enhance sales and marketing for large solar power projects in the second half. The company will also reduce its overseas target markets, seek business concentration and reduce unprofitable thin-film business to improve profitability. The company will leverage outsourcing to cope with declining prices, it said.

Sharp guided for second-half operating loss of JPY 1.6 billion, a 20.8% year-on-year rise in revenue to JPY 136.9 billion, and a 42.8% growth in sales volume to 708 MW.

The full-year operating loss is now forecast at JPY 14 billion, wider than the previous guidance for a JPY-10-billion loss. Sales are seen to rise 2.7% on the year to JPY 230 billion and sales volume to increase 16.5% on the year to 1,250 MW. Earlier, Sharp guided for JPY 260 billion sales and 1,400 MW of sales volume.

(JPY 100 = USD 1.250/EUR 0.966)

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