Sakai LCD plant turned a profit: Hon Hai
April 18, 2013, 12:14 am TWN
TAIPEI, Taiwan -- Sakai Display Products Corp. (SDP), a 10th-generation LCD panel plant in Japan jointly owned by Sharp Corp. and Hon Hai Group Chairman Terry Gou, has turned a profit since last October, Hon Hai sources said Wednesday.
According to Japanese news media, SDP lost 7.4 billion Japanese yen (about NT$2.3 billion or US$77.24 million) from April to December last year, but Hon Hai sources denied the report, without providing figures for the nine-month period.
Hon Hai sources were quoted by the United Evening News as saying that SDP's bottom line had steadily improved since Gou formally got involved in the joint venture's business operations in September 2012.
Sakai's sales have steadily improved month by month, and the money-losing company became profitable in the quarter ending in December 2012, the sources said.
The plant posted even higher profits in the quarter ending in March, putting the company in the black for the second half of its fiscal year that ended March 2013, the sources said, without offering sales or profit numbers.
The sources said Gou's investment in the Sakai plant to date has made a profit rather than lost money as news media have speculated.
Gou's acquisition of a stake in the Sakai plant was announced in March 2012. He began injecting cash into the advanced display panel plant in July 2012 and got involved in its management the following month, according to the sources.
The plant then started to ship 60-inch LCD panels for flat screen TVs to China, the sources said, and is now focused on producing large 60-inch, 70-inch and 80-inch panels.