Nippon Sheet Glass expects worst annual loss

TOKYO -- Nippon Sheet Glass is forecasting its worst annual loss ever after a year in which competition in China and other emerging markets intensified.

      The company said Thursday it expects to report a group net loss of 50 billion yen ($445 million) for the year ended Thursday, far deeper than its previously projected 7.5 billion yen loss.

     The Japanese manufacturer will withdraw from Chinese production of glass for photovoltaic applications at the end of June, citing an economic slowdown. It will also suspend production of glass for smartphones in Vietnam temporarily starting in May.

    As a result, the company will book 42.5 billion yen in losses, including asset impairments, a write-down of deferred tax assets and other charges. That total includes 15 billion yen in asset-impairment charges on automotive and architectural glass operations in China and Brazil.

     Taking responsibility for the company's earnings slump, President Shigeki Mori will give up half of his compensation for three months, while two vice presidents will take a 30% cut.

     Tokyo-based Rating and Investment Information said it was monitoring Nippon Sheet Glass with a view to downgrading its BB-plus issuer rating.