Japan Display suffers losses and reduces the staff
One of the last independent Japanese display manufacturers, Japan Display company (JDI) reported on the work in the fourth quarter of 2018 fiscal year (the period from January to March 2019). Almost independent means that nearly 50 % of the shares of Japan Display are owned by foreign companies, namely the Chinese-Taiwanese consortium Suwa. Earlier this week it was reported that the new partners of the company JDI withhold promised aid of approximately $730 million the Reason ? investors want to see from Japan Display steps aimed at optimization of costs.
On a quarterly conference leadership JDI reported that among the measures to optimize costs provided for a reduction of 20% or about 1,000 people. All of them voluntarily decided to leave the company prematurely or to retire. Another source of savings was the write-off of assets of the two plants JDI: Hakusan Plant and Mobara Plant. At first, the write-off was added to the company of damages in the amount of 75.2 billion yen ($686 million), but only in the new financial year, this will bring savings in the amount of 11 billion yen ($100 million).
With regard to revenue in the reporting period, from January to March inclusive JDI received of 171.3 billion yen ($1.56 billion). That’s 13% more than in the same quarter last year, but 32% less than in the previous quarter. The sequential quarterly decline in revenues manufacturer of displays for mobile devices explains the seasonal factor and a decrease in demand for smartphones. A significant operating loss of the company in the reporting period due to an increase in preparation costs for mass production of OLED screens. Net profit is missing from the JDI report as in the reporting quarter and in previous quarters. Except for the year net quarterly loss Japan Display declined from 146.6 billion yen ($1.33 billion) to 98.6 billion ($899 million).
In the category of products for smartphones (mobile) quarterly revenues sequentially declined by 39% to 127.5 billion yen. Mainly the flow of money down from the USA and, more from China. For fiscal 2018 revenues in the segment fell 17% to 466,9 billion yen ($of 4.23 billion). In the category of products for vehicles for the year, revenue grew by only 4% to 112,3 billion yen ($1.02 billion), while in the fourth quarter of sequential revenue growth amounted to 8 %. Separately, the company stressed the growth of the supply of laptop screens, VR headsets and wearable electronics. And yet it will not help the company to avoid further losses in the first half of 2019 financial year, although second half revenue should start to grow.