(Corrects 'sell' to 'give' in second paragraph)
TOKYO, July 11 Japan's Sharp Corp said
on Friday that it would post a 14.3 billion yen ($141.18
million) extraordinary loss as it pulls out of solar power
production in Europe as part of its restructuring in the region.
On July 15, Sharp will give its 50 percent stake in a solar
power generation joint venture back to its partner, Enel Green
Power SpA, a subsidiary of Italian utility Enel SpA,
after a change in the region's feed-in tariffs hurt sales.
While Sharp will pull out of the power generation venture,
it will continue to produce and sell solar cells in Europe
through 3Sun, the joint venture it set up with Enel Green Power
Sharp has been cutting costs and pulling out of unprofitable
operations after posting a massive 545.4 billion yen ($5.34
billion) net loss in the year to March 2013.
A source told Reuters last week the company was looking to
sell its shares in the solar power venture, as well as talking
to Taiwanese and Turkish companies over licensing its home
appliances and TVs in Europe, where a weak economy has hurt
Sharp said it would register the extraordinary losses for
the April-June quarter, but would not alter its earnings
forecasts for the full financial year to March 2015 as it also
expected special gains from asset sales.
($1 = 101.29 Japanese yen)
(Reporting by Sophie Knight; Editing by Edmund Klamann and Matt