Japan Display posts wider Q1 loss as Apple orders wane

TOKYO: Japan Display Inc posted a wider first-quarter loss and announced about 3,700 job cuts, as it continues to struggle with slower iPhones-related demand from Apple Inc and its late entry into organic light-emitting diode (OLED) screens.

Liquid crystal display (LCD) screens have been Japan Display's mainstay but demand has waned with the emergence of thinner and flexible OLED displays. Slower iPhone sales by Apple have also hit growth.

In the red over the past three years, Japan Display posted a net loss of 31.46 billion yen ($286.13 million) in the quarter ended June, versus a 11.8 billion yen loss a year ago. This was worse than an average forecast for an 18.1 billion yen loss from four analysts polled by Thomson Reuters.

The company did not give a full-year outlook, but said it expects to post a special loss of 170 billion yen due to a business overhaul in the current year ending March 2018.

Earlier this week, a media report said the company was considering seeking funds from an outside investor to help finance the overhaul of its ailing smartphone screen-making business. It got 75 billion yen in aid late last year from its main investor - the state-backed Innovation Network Corp of Japan (INCJ).