TOKYO (Reuters) - Japan’s Sharp Corp (6753.T) 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 (ENEI.MI), 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 and STMicroelectronics (STM.PA).
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 profits.
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 Driskill