UPDATE 1-Sharp to cut LCD panel production – Nikkei

Aug 20 (BestGrowthStock) – Sharp Corp (6753.T: ) will reduce LCD
panel production for up to two months starting August, as
television inventories pile up in the United States and China,
which will also affect supplies to firms including Sony Corp
(6758.T: ), the Nikkei business daily reported.

The company will lower the capacity utilization by 20-30
percent at its new Sakai factory, which makes panels 40 inches
and up, the business daily said.

However, production of panels for Sharp’s own TVs will not
be affected. It will continue to run at its Kameyama plant in
Mie Prefecture that makes small- and mid-size TV panels, the
business daily said.

LCD panels were in short supply in the first half of this
year, but TVs have started piling up in the U.S. and Chinese
warehouses as Chinese manufacturers’ production outpaced
demand, it said.

Sharp reaffirmed its fiscal 2010 TV sales target of 15
million units, a rise of 47 percent from the previous year, the
Nikkei said.

Sharp expects group operating profit to more than double to
120 billion yen. But a decline in panel sales to other
companies will likely erode this figure by 10-20 billion yen,
the daily reported.
(Reporting by Swati Chitnis in Bangalore)

UPDATE 1-Sharp to cut LCD panel production – Nikkei