UPDATE 2-Sharp to cut LCD panel production – Nikkei

* TV inventories piling up in United States, China

* Sharp to cut Sakai plant utilisation rate 20-30 pct -Nikkei

* Sharp declines comment on report of production cut

* Sharp shares down 2.2 pct vs Nikkei’s 1.4 pct slide
(Adds company comment, share prices)

Aug 20 (BestGrowthStock) – Sharp Corp (6753.T: ) will reduce LCD
panel production for up to two months starting this month,
adjusting supplies as TV inventories pile up in the United States
and China, the Nikkei business daily reported.

The company will lower the capacity utilisation rate by 20 to
30 percent at its new Sakai factory, which makes panels of 40
inches and up, and cut panel supplies to TV makers including Sony
Corp (6758.T: ), the business daily said.

However, production of panels for Sharp’s own TVs will not
be affected and it will maintain capacity utilisation rates at
its Kameyama plant in Mie Prefecture that makes small and
mid-size TV panels, the daily said.

A Sharp spokesman said the company would not comment whether
it was considering such a plan.

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

LG Display (034220.KS: ) Chief Executive Kwon Young-soo said
last month the company may cut production of LCDs due to weak
demand from TV makers. [ID:nLDE66M03D]

Sharp reaffirmed its TV sales target of 15 million units for
the business year to March 2011, 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 ($1.41 billion), but a decline in panel sales to
other manufacturers will likely erode this figure by 10 billion
to 20 billion yen, the daily reported.

Shares of Sharp edged down 2.2 percent to 858 yen in early
trading on Friday, underperforming the Nikkei stock average
(.N225: ), which shed 1.4 percent.
($1=85.32 Yen)
(Reporting by Swati Chitnis in Bangalore and Yumiko Nishitani in
Tokyo; Editing by Edmund Klamann)

UPDATE 2-Sharp to cut LCD panel production – Nikkei