Apple supplier Japan Display forecasts 5th straight year of losses (updated)

TPK Holding Co

14/02/2019 06:33

* Reverses profit estimate after reporting Q3 net loss
    * Gets more than half of its revenue from Apple
    * Says in talks with multiple investors

 (Adds comments on talks with investors, background)
    By Makiko Yamazaki
    TOKYO, Feb 14 (Reuters) - Japan Display Inc  6740.T  said it
expects to post its fifth straight year of net losses, with a
late shift to organic light-emitting diode (OLED) screens and
slowing iPhone sales costing it orders from Apple Inc  AAPL.O ,
its biggest client.
    The liquid crystal display (LCD) maker for smartphones,
which gets more than half of its revenue from Apple, reversed 
its forecast for a profit for the year ending in March after
reporting on Thursday a net loss of 1.3 billion yen for the
October-December quarter.
    The quarterly loss compares with the 17 billion yen average
profit estimate of three analysts, according to Refinitiv data.
For the full year, nine analysts had on average estimated a
profit of 8.1 billion yen, the data showed. 
    The losses are making the company desperate for fresh cash,
as previous, publicly funded bailouts have failed to help the
company reduce its dependence on Apple or to accelerate a shift
to OLED panels.
    The company reiterated on Thursday it is in talks with
multiple investors to bolster its finances and is aiming to
reach an agreement soon.
    Kyodo news agency reported that the company is in talks to 
receive up to 80 billion yen ($723 million) in a bailout from a
group including Taiwanese touch panel maker TPK Holding Co
 3673.TW  and Chinese state-owned Silk Road Fund.  urn:newsml:reuters.com:*:nL3N1SM32D
    The deal, if realised, would make the group the top
shareholder with up to 50 percent stake in the LCD maker,
replacing the Japanese government-backed INCJ fund.
    A Silk Road Fund representative said the fund
"has never been in contact with" Japan Display.
    Japan Display was formed in 2012 by combining the LCD
businesses of Hitachi Ltd  6501.T , Toshiba Corp  6502.T  and
Sony Corp  6758.T  in a deal brokered by the government.

 (Reporting by Makiko Yamazaki; Editing by Muralikumar
Anantharaman)
 ((Makiko.Yamazaki@thomsonreuters.com; 81-3-6441-1039;))