Sales of Audio-Visual and Communication Equipment in the second quarter of fiscal 2011 (July through September, 2011) were 283.2 billion yen, down 4.8%, and operating income was 7.7 billion yen, up 3.6%, both compared to the previous quarter (April to June, 2011). For LCD TVs, increased sales of large-size models 60 inches and larger in overseas markets, centered mainly on North America, offset a decline in sales in Japan that followed the end of analog TV broadcasting. As a result, sales of LCD TVs in the second quarter exceeded those of the previous quarter. At the same time, sales of mobile phones fell below the level of the previous quarter, reflecting increased competition from overseas manufacturers and a drop in sales of conventional mobile phones.

Sales of Health and Environmental Equipment were 73.3 billion yen, down 1.3%, and operating income was 8.6 billion yen, up 29.4% over the previous quarter. Although sales declined because of lower sales of air conditioners due in part to increasing awareness of the need to conserve energy in Japan and the impact of a cool summer in the ASEAN region, increased sales of high value-added products such as large refrigerators and LED lights contributed to higher operating income.

Sales of Information Equipment were 72.5 billion yen, up 9.6% and operating income was 9.5 billion yen, up 62.9% over the previous quarter, reflecting strong sales of information displays.

As a result, sales of these three product groups comprising Consumer/Information Products were 429.2 billion yen, down 2.1%, and operating income was 26.0 billion yen, up 29.5%, both compared to the previous quarter.

Sales of LCDs were 221.8 billion yen, up 18.0% over the previous quarter, while operating income recorded a significant improvement to 11.7 billion yen from the operating loss of 4.6 billion yen posted in the previous quarter. Sales of Sharp’s mobile LCDs, mainly for smartphones, continued strong. In addition, we were able to maintain stable operations at our large-size LCD plants, where production operations had been temporarily suspended during the early part of the first quarter, by shifting production to large-size panels 60 inches and larger.

Sales of Solar Cells were 59.2 billion yen, up 15.5% compared to the previous quarter, while an operating loss of 4.7 billion yen was posted for the quarter. Greater awareness of energy conservation and increased interest in renewable energy led to higher sales. However, factors such as severe price competition amid a deteriorating market environment, centered mainly in Europe, had a negative impact on operating income.

Sales of Other Electronic Devices were 69.8 billion yen, up 53.4% over the previous quarter, and operating income was 5.4 billion yen, 11 times that of the previous quarter. Sales remained strong for devices such as CCD/CMOS imagers used in the camera modules of mobile terminals.

As a result, sales of these three product groups comprising Electronic Components were 350.9 billion yen, up 23.2% over the previous quarter, while we were able to reverse the operating loss of 7.9 billion yen of the previous quarter and return to profitability with operating income of 12.4 billion yen.