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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Japan says may extend nuclear evacuations | 2:21am EDT China tells U.S. to quit as human rights judge 10 Apr 2011 Texas wildfires destroy homes, buildings 10 Apr 2011 Gaddafi accepts peace plan but rebels say he must go | 1:41am EDT U.S. gallon of gas jumps to $3.76, could see $4-survey 10 Apr 2011 Discussed 131 Reid says Republicans want shutdown to close clinics 124 U.S. to reach debt limit by May 16: Geithner 113 Obama, Congress struggle to find budget deal Watched African Union leaders meet with Gaddafi Sun, Apr 10 2011 Wall St. dominated by oil swing Fri, Apr 8 2011 Rebels near Brega, Gaddafi on tv Sat, Apr 9 2011 Sharp suspends two TV panel plants as demand tumbles Tweet Share this By Isabel Reynolds TOKYO (Reuters) - Sharp Corp has suspended production at two Japanese liquid crystal display (LCD) panel plants until early May as it confronts slumping domestic demand for televisions and shortages of a gas used in panel... Email Print Related News Nikkei seen rangebound, reconstruction plays eyed Sun, Apr 10 2011 Japan fails to stop radioactive discharge into ocean Sun, Apr 10 2011 Japan's reactor operator apologizes for radiation Sat, Apr 9 2011 Japan to stop pumping radioactive water into sea Fri, Apr 8 2011 Solar startups turn to big companies for capital Wed, Apr 6 2011 Analysis & Opinion Venture capitalists could be stifled by SEC share sale review Can I pull the plug during a shutdown? Related Topics Technology » Stocks By Isabel Reynolds TOKYO | Mon Apr 11, 2011 3:18am EDT TOKYO (Reuters) - Sharp Corp has suspended production at two Japanese liquid crystal display (LCD) panel plants until early May as it confronts slumping domestic demand for televisions and shortages of a gas used in panel production, the company said on Monday. For Sharp, whose television sales are focused on the domestic market, the steep fall-off in consumption following the March 11 earthquake and tsunami will be particularly painful in a year that was already expected to bring a slide in TV sales. "Following the disaster, demand for flat-panel televisions was not as strong as we had anticipated," said Sharp spokeswoman Miyuki Nakayama. "We have a month's inventory on hand." Sharp CEO Mikio Katayama had said days before the quake that he expected the company to beat its LCD TV sales forecast of 15 million units for the year to the end of March 2011. But research firm BCN said Japan's total March sales of flat-panel TVs came to two-thirds of the previous year's figure, after showing some signs of recovery after government incentives were slashed in December. Domestic television sales had been expected to slide again after July, when Japan completes a switch to digital terrestrial broadcasting, but BCN analyst Eiji Mori said there could be a boost later in the year as northern Japan starts to recover. SURPLUS INVENTORIES Production was halted earlier this month at Sharp's Kameyama plant in Mie Prefecture and its state-of-the-art 10th generation Sakai plant in Osaka, which make large LCD panels for TVs. Analyst Yuji Fujimori of Barclays Capital retained his "underweight" rating on Sharp's shares and revised down the target price to 700 yen from 780 yen. He now estimates the company will post a loss of 7 billion yen ($82.6 million) in the April-June period, compared with his previous estimate of an 11 billion yen profit. But Fujimori said markets would welcome the decision to bring surplus inventories back to normal. Shares of Sharp ended down 0.8 percent, compared with a 0.5 percent fall in the broader Nikkei index. Sharp aims to maintain steady production of smaller LCD panels for smartphones and other devices. "Currently we are seeing more demand for small and midsized panels than for large ones, so we are focusing on using the gases we procure for production in that segment," Nakayama said. Sharp expects to resume operations at the two large panel plants after the string of Golden Week holidays at the end of April and early May, Nakayama added. Production at the Taki and Tenri factories in Nara prefecture, which produce smaller LCD panels, will continue. 1 2 Next Technology Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. 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