Japan Display Cuts Projections amid Order Uncertainty
Tokyo, Nov. 12 (Jiji Press)--Japan Display Inc. <6740> cut its earnings projections for the year through March 2019 on Monday, amid an uncertain outlook on orders for liquid crystal display panels from smartphone makers.
Japan Display, a supplier to Apple Inc., lowered its year-on-year sales growth forecast to 5-15 pct from 10-20 pct as of August, while reducing the operating profit margin estimate to 1-2 pct from 2-3 pct.
At a press conference, Yoshiyuki Tsukizaki, Japan Display's president and chief operating officer, cited uncertainty over the January-March quarter, following a media report that Apple has canceled additional production of the iPhone XR.
Tsukizaki still stressed that Japan Display is sticking to its goal of achieving a turnaround in the year, after it suffered a net loss of 247.2 billion yen the previous year.
For the first half ended in September, Japan Display reported that its sales slumped 42.7 pct from a year earlier to 214,273 million yen, due to intensifying competition with overseas rivals. But its net loss shrank to 9,523 million yen from 68,033 million yen, thanks to cost cuts.
[Copyright The Jiji Press, Ltd.]