Feeds

Top mobe panel maker Japan Display slashes profit forecast

LTPS big daddy 'fesses to "difficult price negotiations'

The essential guide to IT transformation

The world’s biggest smartphone-and-tablet screen-maker Japan Display has seen its share price tumble to record lows after it was forced to cut profit estimates for the year by nearly 11 per cent.

The LCD joint venture - which comprises the display units from Sony, Hitachi and Toshiba – said in a note on Monday that it was revising down its profit forecast for FY 2013 from ¥30.4bn (£180m) to ¥27.2bn (£160m), a decrease of 10.5 per cent.

The firm provided the following brief explanation for its decision:

At the end of the consolidated fourth quarter, JDI experienced reduced purchases at customer request as well as reduced purchases of certain products due to difficult price negotiations in light of a decline in market prices for displays for medium price-range smartphones. As a result, net sales were lower than forecasted net sales indicated in JDI’s earlier earnings forecast. On the profit side, lower net sales resulted in decreased operating income and ordinary income.

Unsurprisingly the market didn’t react well to the announcement.

Japan Display shares fell 16 per cent to close on Monday at ¥672 – way below their ¥900 IPO price, according to Bloomberg.

The firm will now be hoping that there are no setbacks to rumoured contracts for the iPhone 6, which is said to be coming in 4.7in and 5.5in versions.

Pics purporting to show a larger-screened iPhone appeared on the Chinternet recently, although there have been mutterings that the 5.5in version will be delayed.

Japan Display also faces unsettling competition from Asian rivals in the LTPS space, especially in China, which are increasingly undercutting on price – in what could become a worrying trend for the firm. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?