OSAKA, Japan May 27 Japan's Nitto Denko Corp
, an Apple Inc supplier that makes industrial
films and tapes, expects its reliance on volatile business in
display screens to ease as it courts customers in autos and
other industries, its chief executive said.
The maker of touch-panel films expects its optronics
division, which supplies producers of screens for smartphones,
tablets and TVs, to account for about half its total revenue in
three years, down from 60 percent in its latest results, Nitto
Denko President Hideo Takasaki said in an interview on Tuesday.
That would mean roughly flat sales for the screen sector,
while the company's latest three-year business plan, announced
this month, calls for annual growth of more than 10 percent to
the auto sector.
"We'll maintain our number one position (in touch panel
film)," Takasaki said, but added that autos offered a stable
Nitto Denko's shares lost nearly half their value in the
final months of last year after the company twice cut its profit
guidance, hit by a sudden downturn in its business with
producers of mobile device displays. It had hit a seven-year
high in September when it was added to the benchmark Nikkei
average and was posting brisk earnings growth.
Takasaki said maintaining a high proportion of new products
among its line-up would also help to smooth out some of the
volatility in its business with electronics producers.
Nitto Denko sharply increased its capital spending last year
to about 76 billion yen ($746.01 million), from levels around 30
billion to 50 billion yen in prior years, and plans to maintain
that level under its three-year business plan.
($1 = 101.8750 Japanese Yen)
(Reporting by Yoshiyuki Osada; Writing by Edmund Klamann;
Editing by Louise Heavens)