Operator of LCD plant in Osaka falls into the red
OSAKA, April 16 (Kyodo) — The operator of a liquid crystal display plant in Sakai, Osaka Prefecture, that is jointly managed by struggling Japanese electronics maker Sharp Corp. and Taiwanese business partner Hon Hai Precision Industry Co., reported Monday a 7.4 billion yen net loss for the April-December period.
The operator, Sakai Display Products Corp., which runs the plant making large-sized LCD panels, logged an operating loss of 3.3 billion yen on sales of 108.6 billion yen.
The loss is the result of a low operating rate of about 30 percent due to the sluggish LCD panel business during the April-June quarter when the Sakai plant was a consolidated subsidiary of Sharp, the major Osaka-based electronics maker.
The Sakai plant bounced back with growing LCD panel sales from July onward after becoming a joint operation of Sharp and Hon Hai, but the improved performance was insufficient to cover up the slump in the April-June period, according to the earnings report.