Sharp Drops on Nikkei Report It Will Cut Output: Tokyo Mover
Feb. 1 (Bloomberg) -- Sharp Corp. (6753) fell the most in almost six months in Tokyo trading after the Nikkei newspaper reported Japan’s largest liquid-crystal-display maker will cut TV panel production by half for a month at its biggest factory.
Sharp dropped as much as 6 percent, the biggest intraday decline since Aug. 9, to 617 yen, and traded at 643 yen as of the 11:30 a.m. break on the Tokyo Stock Exchange. The Nikkei 225 Stock Average gained 0.3 percent.
The company’s panel business recovery plan is “veering off track,” Amir Anvarzadeh, Singapore-based manager of Asian equity sales at BGC Partners Inc., wrote in a note to clients today. BGC removed Sharp from its “buy” list, after adding it Jan. 5.
The maker of Aquos televisions will halve output at its factory in Sakai, Osaka prefecture for more than a month as weakening global demand has caused inventories to rise, the Nikkei newspaper reported today, without saying where it obtained the information. Sharp isn’t the source for the report, the Osaka-based company said today in a statement.
The television maker is scheduled to report third-quarter earnings today.
Net loss will probably be 16.2 billion yen for the year ending March 31, based on the average of 24 analyst estimates compiled by Bloomberg. That compares with the company’s own forecast for annual net income of 6 billion yen and profit of 19.4 billion yen in the previous year.
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