Tokuyama Drops by Record as Silicon Plant Charge Causes Lossby
Tokuyama Corp., a Japanese maker of polysilicon, fell by a record in Tokyo after the company predicted on Friday a full-year net loss of 103 billion yen ($850 million).
The shares dropped as much as 32 percent to 161 yen before closing at 177 yen. The forecast was cut from an earlier projection of a 14 billion yen profit after the company booked a 123.5 billion yen impairment charge on its polycrystalline silicon plant in Malaysia, which began operations in October 2014. Polysilicon is the raw material used to make solar panels.
A worldwide glut of the material led to price declines, the company said in a statement. “Future price forecasts are projected to fall substantially below the company’s business plan,” it said.
Tokuyama ranks seventh among the top 10 makers of polysilicon, according to data compiled by Bloomberg.