| TOKYO, Sept 4
TOKYO, Sept 4 Shares of Nippon Electric Glass
(5214.T) and Asahi Glass Co (5201.T) tumbled on Thursday after
rival Corning Inc (GLW.N) cut its outlook on slower-than-expected
demand for glass used in flat TVs. [ID:nN03517425]
Corning's profit warning came on the same day that flat panel
maker LG Display Co Ltd (034220.KS) (LPL.N) said it would keep
its output at 90 percent of normal as prices remain weak and
demand slow for flat screen TVs and PCs. [ID:nSEO155444]
Asahi Glass closed the morning down 3.6 percent at 1,065 yen,
underperforming a 0.4 percent fall in the benchmark Nikkei
average .N225. Nippon Electric was hit harder, going untraded
due to a glut of sell orders at 1,225 yen, down 14 percent.
"Compared with Asahi Glass, Nippon Electric Glass has bigger
exposure to panel makers that are undergoing a correction in
production, such as AU Optronics Corp (2409.TW) and LG Display,"
said Nomura Securities analyst Takaomi Kono.
Corning said that while the consumer market for liquid
crystal display (LCD) TVs was still strong, shipments of its LCD
glass were slower than expected as manufacturers were taking more
time to work through their excess inventory.
"We had a strong April-June quarter, when demand for LCD
glass was robust, and we were not able to catch up with demand,"
said Shigeru Harada, manager of public relations at Nippon
"But for the July-September quarter, we are expecting an
impact from the ongoing production correction by panel makers in
South Korea and Taiwan," he said.
Nippon Electric is scheduled to update its estimate for the
July-September quarter and give a forecast for the following
quarter in the final week of this month.
Nomura's Kono said he expects Nippon Electric to keep its
forecast for group operating profit to come in a range of 100-130
billion yen ($924 million-$1.20 billion) for the year ending in
"Even considering the current situation, I expect the company
can meet its target range given the very strong first quarter,"
(Reporting by Taiga Uranaka)