Sales of Audio-Visual and Communication Equipment in the first quarter of fiscal 2011 were 297.6 billion yen, down 14.7%, and operating income was 7.5 billion yen, down 39.2%, both compared to the same period last year. For LCD TVs, sales increased on a unit basis as a result of a surge in demand in anticipation of the end of analog TV broadcasting in Japan. However, on a monetary basis, sales declined slightly compared to the same period last year, reflecting the effects of price declines. In addition, sales of mobile phones also fell as a result of the fact that sales of Sharp’s new models for the Japanese market were launched mainly in the latter half of the first quarter.

Sales of Health and Environmental Equipment were 74.3 billion yen, up 14.8%, and operating income was 6.7 billion yen, up 26.9% over the same period last year. Sales of air conditioners, refrigerators and LED lights remained strong, reflecting growing demand for energy-efficient and power-saving home appliances.

Sales of Information Equipment were 66.1 billion yen, essentially flat (down 0.6%) compared to the same period last year, reflecting reluctance on the part of corporate customers to introduce new equipment, while operating income was 5.8 billion yen, up 25.0% over the same period last year.

As a result, sales of these three product groups comprising Consumer/Information Products were 438.2 billion yen, down 8.8%, and operating income was 20.0 billion yen, down 10.1%, compared to the same period last year.

Sales of LCDs were 188.0 billion yen, down 28.0% over the same period in the previous year, and an operating loss of 4.6 billion yen was posted. Sales of Sharp’s mobile LCDs continued extremely strong due to burgeoning demand centered mainly on LCDs for smartphones, a market that is currently experiencing major growth. In contrast, sales of large-size LCDs suffered a significant decline because we temporarily suspended glass substrate input at our large-size LCD panel plants from early April to mid-May 2011, to cope with disruptions in the supply of materials caused by the Great East Japan Earthquake, and a build-up in inventories associated with a steep drop in demand stemming from the quake.

Sales of Solar Cells were 51.3 billion yen, down 11.1% compared to the same period last year, and an operating loss of 3.7 billion yen was posted. In Japan, greater awareness of energy conservation and strong interest in renewable energy kept sales steady. Overseas, however, sales were negatively affected by revisions in feed-in tariffs as a result of fiscal austerity measures in Europe, coupled with a decline in project finance activities and the continued appreciation of the yen against the euro.

Sales of Other Electronic Devices were 45.5 billion yen, down 38.1%, and operating income was 0.4 billion yen, down 87.1%, both compared to the same period in the previous year. Sales were affected by a decline in prices for devices used in digital products such as CCD/CMOS imagers.

As a result, sales of these three product groups comprising Electronic Components were 284.8 billion yen, down 27.4% compared to the same period last year, and an operating loss of 7.9 billion yen was posted.