Japan Display Inc. (6740), a supplier of screens to Apple Inc., plummeted 12.1 percent in Tokyo trading after forecasting profit that missed analysts’ expectations amid weaker demand.
The shares of the company dropped by 71 yen, the most since April 28, to close at 518 yen. Net income at Japan Display, which also makes displays for Sony Corp. (6758) and ZTE Corp., will probably be 26.8 billion yen this fiscal year, compared with the 42.8 billion yen average of analyst estimates compiled by Bloomberg.
“Losses on new product starts” and diminished margins in the first quarter because of price declines affected the forecast, the company said yesterday in a statement.
Japan Display has dropped 42 percent since its stock started trading on March 18, compared with a 0.6 percent decline in the Topix index.
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