Japanese glass co projects 55-65 pct fall in q4 profit

Japan's Nippon Electric Glass Co. (TSE:5214) said Tuesday that its consolidated operating profit for the October-December quarter was likely to fall 55-65 per cent year-on-year, due to a sharp decline in sales of its mainline substrate glass for liquid display panels (LCDs).

This marks a steep downgrade from its prior projection calling for a year-on-year change somewhere between a 5 per cent decline and a 15 per cent rise. The revised range would be equivalent to a profit decline of 8.5 billion yen (US$92.3 million) to 11 billion yen.

Sales of glass for LCD substrates had already been losing steam in the July-September quarter due to production adjustments among Nippon Electric Glass' customers, but the business environment has worsened further in the current quarter.