LG Philips LCD Cuts Q2 Forecast, A Sign of Things to Come? (LPL, MC, SHCAY, SNE)

As if the leading electronics companies of Japan needed more bad news ahead of what could be another Fed rate hike that might begin to really hurt consumer demand in the U.S. Well, they got it yesterday when LG Philips LCD Co (LPL) cut its Q2 forecast citing slower sales and rising inventory that will force it to cut production and prices.

Matsushita Electric Industrial (MC), Sharp Corp (SHCAY), and Sony Corp (SNE) all took a beating in Tuesday trading in Tokyo -- a double whammy from the LG Philips announcement and the Nikkei's biggest one-day drop since September 12, 2001.

World Cup Soccer which began last Friday was supposed to create huge demand for LCD and plasma TVs. That demand doesn't seem to have been realized but manufacturers and retailers have their fingers crossed that as the tournament heats up more fans will be buying TVs. At least Sony's president in Europe has publicly admitted sales were weak until as of very recently.

Matsushita Electric Industrial (Tokyo: 6752) -5.54%, 2,215 yen ($19.39)

Sharp (Tokyo: 6753) -7.09%, 1,613 yen ($14.12)

Sony (Tokyo: 6758) -3.25%, 4,770 yen ($41.75)

1-year comparison chart of LPL, MC, SHCAY, and SNE: