Tokyo Electron sees FY 2013/14 loss after solar writedown
Dec 18, 2013 - Japanese firm Tokyo Electron Ltd (TYO:8035) today guided for a net loss of JPY 22 billion (USD 214m/EUR 155m) for the year through March 2014 mainly as a result of a JPY-32.8-billion impairment loss related to its Swiss solar manufacturing unit.
The company's previous guidance was for a 2013/14 profit of JPY 23 billion.
In a statement, Tokyo Electron said it had to make the huge writedown of the Switzerland-based solar business -- TEL Solar Holding AG -- as the subsidiary was affected by the tough market conditions amid oversupply globally, even though there has been a slight improvement in the prices of photovoltaic (PV) products. The unit produces thin film silicon photovoltaic panels.
Tokyo Electron will also record impairment losses of JPY 13.4 billion related to other businesses and its restructuring plan. The company affirmed its projections for JPY 605 billion in fiscal 2013/14 revenues and operating profits of JPY 30 billion.
In September the Japanese group and US-based Applied Materials Inc (NASDAQ:AMAT) agreed to combined their business to form a chip and display manufacturing technology group valued at USD 29 billion (EUR 21bn).