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Sharp cuts LCD panel output

Posted: 02 Feb 2012 ?? ?Print Version ?Bookmark and Share

Keywords:LCD panel? panel manufacturing?

Sharp Corp. is planning to cut into half its LCD panel output at its Sakai facility in Osaka, Japan, according to a report by the Nikkei business daily. This is the company's second production cut in a year. Sharp's business has been hurting because of the downtrend in television demand.

The reduced production rate is likely to affect Sharp's earnings and the company is expected to report a group net loss for the fiscal year ending March 31, Nikkei's report said. This is the first in three years that Sharp will report net losses.

Sharp's Sakai plant manufactures around 1.3 million panels for 40-inch TVs a month. The plant was idled for a month in April last year and after that it run at 80-90 percent of its capacity. However, inventories have piled up because of the weak TV sales during the year-end holidays, Nikkei said.

The Japanese paper added that operations at the Sharp site will be normalized depending on market conditions and it is likely that production adjustments could drag on for a long time.

This lull in production will give Sharp a chance to reconfigure its Osaka factory to make panels with improved features, such as higher resolutions and power-saving functions, the newspaper said.

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