Mitsubishi Materials Corporation hereby announces that it will post the following impairment loss on Noncurrent Assets in the nine months period ending December 31, 2013.
- Causes of impairment loss
Following an aggravated market environment of the polycrystalline silicon business, Mitsubishi Materials Corporation recognized signs of impairment loss resulting from a decline in profitability, and, pursuant to the Accounting Standards for Impairment of Noncurrent Assets, after careful examination of the future recoverability of noncurrent assets of the Corporation's Yokkaichi Plant (Yokkaichi-shi, Mie, etc.) which produces polycrystalline silicon, hereby announces that the Corporation expects to post 27,200 million yen loss from impairment in the consolidated financial results of the nine months period ending December 31, 2013.
The Corporation intends to continue operating the Yokkaichi Plant in the future, striving to ensure stable supply of high-quality products while improving the plant's profitability by implementing additional cost improvement measures.
- Future prospects
Notwithstanding the above mentioned impairment loss, considering certain gains made on sales of investment securities, etc., the Corporation decided to make no changes to the consolidated earnings forecast for the year ending March 31, 2014 which was announced on November 6, 2013.
※ Overview of the Yokkaichi Plant
Location: Yokkaichi-shi, Mie
Establishment: June, 1967
Business activities: manufacture of polycrystalline silicon for semiconductors, and high purity silane gasses