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Operator of Sharp-Foxconn LCD plant in Osaka falls into the red

Kyodo

The operator of a liquid crystal display plant in Sakai, Osaka Prefecture, jointly managed by struggling electronics maker Sharp Corp. and Taiwanese business partner Hon Hai Precision Industry Co., has reported a ¥7.4 billion net loss for the April-December period.

Sakai Display Products Corp., which runs the plant making large LCD panels, said Monday it logged an operating loss of ¥3.3 billion on sales of ¥108.6 billion.

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 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 the slump in the April-June period, according to the earnings report.