NSG incurs extra-ordinary loss on asset write-off and disposal
Nippon Sheet Glass Co., Ltd. (“the Company”) announces that, in the fiscal year ending 31st March 2007, the Company will incur extra-ordinary loss as below.
With the decision to discontinue the business of Plasma Display Panel (“PDP”), the Company will incur extra-ordinary loss of an estimated 760 million yen and 350 million yen for write-off of fixed assets and disposal of inventories, respectively
In 2002, the Company developed the glass for PDP substrate, named “Vingt et Un” and has endeavored to obtain the customers’ acceptance and commence its commercial production. However, under the overwhelming negative factors of PDP market, including a decline in sales prices, fierce competition with LCD panels, the Company decided to discontinue this with the judgment that it is difficult to make it profitable.
Regardless this decision, the Company will continue exploring the new products for the coming generation, making use of the accumulated experience in production and fine fabrication of new composition glass.
3. Effects on the forecast
The Company’s financial forecast will not be revised because of this loss.