Companies that make huge flat-screen televisions and their LCD panel components are alerting investors that demand is dropping in the U.S. and other developed markets.
The forecasts trickled out as Asian electronics manufacturers reported earnings for the most recent fiscal quarter.
On Thursday, Sharp Corp. of Japan slashed its earnings forecast for the fiscal year, which ends in March, saying it had to adjust its production of LCD panels in the most recent quarter to respond to a sharp decline in demand for the large-size panels.
Also Thursday, South Korea's LG Electronics Inc. said strong sales of LCD TVs, particularly in emerging markets, helped push its home entertainment segment revenue up 9 percent - but its operating income sank by about 52 percent. The company said it expects price erosion in its TV business will eat into earnings in the fourth quarter.
Sony Corp. of Japan reported Friday that LCD TV prices fell in the quarter that ended in September. The company cut its operating income forecast for the segment that sells the flat-screen televisions, citing deterioration in the North American market.
South Korea-based Samsung Electronics Co. said Friday it also expects prices for LCD panels to decline.
That meshes with a recent report from iSuppli Corp., which tracks shipments of LCD panels and flat-screen televisions. The research group reported that the number of LCD panels for TVs shipped in the April-June quarter outstripped the number of TVs that were shipped; LCD panel buyers cut orders in July, iSuppli said, making the glut even worse and pushing prices for LCD TVs down in the early fall.
Suborbital spaceflights that rely on rubber-based rocket fuel could shrink icecaps, alter the ozone layer and affect global temperatures, according to a new study.
Yet the study authors’ assumptions about the number of rocket launches per year and the chemistry of rocket exhaust have raised questions about their conclusions among space-tourism companies and climatologists not involved in the study.
Atmospheric scientists who performed the research probed the effects of belching ultrafine soot high into the stratosphere, where — unlike the troposphere below it — there isn’t rain and wind to quickly filter soot out of the air. Rubber-based rocket fuel burned with nitrous oxide is the preferred propellant of the burgeoning space-tourism industry, and chemists suspect such hybrid engines emit sooty black carbon. Closer to Earth, the stuff has been shown to soak up extra radiation from the sun and contribute to climate change.
“This study was a natural extension of the climate-research community gaining a greater and greater appreciation of black carbon in terms of global radiative forcing,” said Martin Ross, an atmospheric scientist at The Aerospace Corporation in El Segundo, California, and leader of the research funded in part by his employer. “Soot is a very large issue in the troposphere,” Ross said, but its behavior isn’t well-understood at higher altitudes.
To model the effects of space tourist launches on the Earth’s atmosphere, Ross and his colleagues used the open-source Whole Atmosphere Community Climate Model Version 3, or WACCM3, one of the most-advanced computer models available to study impacts to global climate.
They ran two supercomputer-powered simulations for two weeks, one as a control and another modeling the impact of 1,000 suborbital flights per year for the next four decades. That many flights, according to the study, would annually deposit more than 1.3 million pounds of soot into the stratosphere.
“We looked at the stated business plans from corporations that are planning to build vehicles for space tourism,” Ross said. “If you go to their websites, they’ll say things like, ‘we plan to launch once per day.’ We found 1,000 per year is well within stated objectives of the industry.”
On average, according to the simulation, the soot pushed polar ocean temperatures up by 1.8 Fahrenheit degrees, melted 5 to 15 percent of sea ice and depleted 1 percent of tropical ozone (while boosting polar ozone by 6 percent).
“We’re not making any particular prediction about any system, just taking reasonable guesses at what soot from a hybrid rocket engine looks like and what the launch industry will do in the future,” Ross said. “When we put that into a gold-standard model, the effect on the Earth is surprisingly large. In short, we think black-particle carbon from rockets is something that deserves attention.”
Their assumptions may not be perfect, said Gerald North, an atmospheric scientist at Texas A&M University who was not involved in the study, but the measured effect is significant enough to warrant further investigation.
While they make assumptions about some unknowns, such as the behavior of soot at high altitudes, North said, “they’re careful in expressing this is not the last word” and are “inviting others to take a look.”
Ross and Michael Mills, an atmospheric chemist at the National Center for Atmospheric Research in Colorado and a co-author of the study, said that’s precisely what the research team sees as the next step. In particular, getting a handle on what’s in the emissions of different types of rocket plumes.
“There are few direct high-altitude measurements of rocket plumes. We really need to get aircraft in those and get measurements of soot and other particles,” Mills said. “Until then, the sophistication of our models is limited.”
To do just that, Ross said The Aerospace Corporation is planning a workshop to bring together under one tent all the stakeholders in science, rocket engineering, space-tourism companies and the government agencies.
“We need to get these players together and exchanging ideas, then ask the policy people to figure out what to do, if anything, with the information,” Ross said.
“I think we and others in the industry welcome the opportunity to talk about all of these issues,” said George Whitesides, CEO of Virgin Galactic, a space-tourism company that’s planning to use hybrid rocket engines. Whitesides wasn’t without reservations about the study and its conclusions, however.
“Frankly, I have to admit I wished they talked to us before putting out a paper, but that’s OK. Climate issues are deeply important to Virgin, and we take them very seriously,” Whitesides said.
Part of the reason the company chose the hybrid rocket design for its SpaceShipTwo was “because of its significantly lower environmental impact than other designs.” Whitesides also said 1,000 space tourist launches per year is “guesswork,” because the industry is privatized and young.
“I think as we look at this more, we’ll find the impact will be far smaller than that set out in the paper,” he said. “In any case, I welcome the conversation.”
Whether or not peaceable collaborations ensue, both Ross and Mills expressed that carbon soot is something the nascent space tourism industry can’t ignore.
“This shows that a new kind and level of emission being deposited directly into the stratosphere could have a significant effect,” Mills said. “Companies need to proceed with developing their systems with full knowledge of consequences on the planet.”
Images: 1) Virgin Galactic’s SpaceShipTwo (center) attached to WhiteKnightTwo. Flickr/Jeff Foust. 2) The average predicted changes after one decade in the ozone layer (top) and regional temperatures (bottom) caused by 1,000 hybrid rocket launches per year for 40 years. Ross et al. 3) Average seasonal soot deposition, in grams per square meter, in the stratosphere predicted by Ross et al.’s simulation. Ross et al.
IT is interesting to note that the National Cards Group – a grouping of Malaysian credit card issuers, mainly banks – has launched a campaign to inculcate responsible credit card usage among consumers.
They have called the campaign Swipe Smart with 6E, 6E being the so-called six enablers – educate yourself, exercise caution, enhance your lifestyle, enjoy the benefits, eliminate debt and engage with your card issuer.
Well and good. One should not pour cold water on such a noble deed by the card issuers to ensure that their customers are educated and know how to use the card responsibly without getting themselves – and in the longer run the issuers – into trouble.
It was good to see too that there were representatives from Bank Negara, the Federation of Malaysian Consumer Associations (Fomca), the Association of Banks and others there.
The only thing that was lacking was a similar campaign for card issuers, yes, you read right, the card issuers. You see, the credit card problem is a double-edged sword – both the behaviour of issuers and users contributes to delinquency. Eventually, if things really get bad, both sides will suffer – the users may become bankrupt and the banks may be saddled by high bad debts.
Both parties have to be responsible and there has to be a balance of profit with responsibility. There is a need to educate the card issuers too to, using the words of the National Cards Group but applied to itself this time, to inculcate responsible credit card issuance among card issuers.
We will even call the campaign by the same name – Swipe Smart with 6E – with its own six enablers. We hope, Fomca, who was present there, will take the cudgels up on behalf of the consumers, call the issuers and launch this campaign.
Here is our proposed 6E campaign directed at card issuers:
1. Eliminate profiteering such as late payment charges. We have written about this before. The effective interest rates on this are extortionate and exorbitant. If you are late by one day on an outstanding balance of RM100 (even if your credit limit is RM100,000!) the charge is RM50. That’s 50% a day or 18,250% a year! Now what entitles the bank or issuer to charge you such an interest rate when your credit limit is RM100,000 and you have an unutilised portion of this of RM99,900? If that is not profiteering, what is?
2. Ease up on your interest rates. Most of us pay 18% a year on balances outstanding when the fixed deposit rate is not even nudging 3%. They take your money at 3% or less, then lend it back to you for 18%! Housing loans are at 6%, why is the credit card interest rate three times that at 18%, a rate that only licensed money lenders charge?
3. Exercise restraint in your marketing. These days, have one credit card and other issuers deluge you with cards and offers. Sometimes they send a card to you that you don’t want and then three months later bill you for service charges! Then I have to call them – it takes ages to get through with a robot asking you whether you want to do this or that before you finally get through – and demand they withdraw their statement. And then they offer credit cards to all manner of people who don’t know how to use them or abuse the credit lines, so long as they have a regular salary – civil servants are great targets. And because they have a salary, the banks can get their money back – with huge penalties to boot.
4. Engage with your customer. Before they send us all that unwanted promotional material, the issuers should ask us if we want them. They should remind us – constantly – that outstanding balances cost us 18% a year, the highest rate of any bank facility, and if I am not mistaken, the highest possible legal lending rate.
5. Educate yourself on social and ethical responsibilities. Yes, we know profits are all important and yes we know there are a lot of ignorant people out there from whom money can be made. But don’t financial institutions have a social and financial responsibility to their customers, especially people, and to inform them fully of how they make money from them? If issuers want to educate the public on the dangers of credit cards, they should educate themselves on immoral behaviour and how the drive to profit stops them from truly educating the general public.
6. Explain all your charges and actions fully. I have not yet found an issuer who advertises that the penalty charge for late payment is as high as nearly 20,000% a year. Perhaps they should print this on the envelopes they mail to customers. And how many people know that many credit cards issuers impose a service charge on overseas spending, have unfavourable exchange rates for transactions, and have service fees for interest-free instalment payments? Can they tell us why they are not pushing debit cards (no interest here, the funds are transferred directly from your bank account) equally hard? The list goes on. It is time, if the issuers wanted to educate the public, for them to take huge full-page advertisements to fully disclose all their charges in the simplest possible language. If they can’t find anybody to write the copy for them in simple language, I volunteer to do it for free.
Well, that’s our 6E Campaign aimed at educating our banks and other card issuers in brief. We hope somewhere out there some consumer organisation will take up this case and that the authorities will sit up and take notice and realise that issuers too contribute to the credit card problem.
■ Managing editor P Gunasegaram notes with some trepidation the following figures for credit card usage in Malaysia: there are 9 million cards and the average transaction through cards is RM211mil a day or RM77bil a year. That’s a lot of potential for some to make a lot of money and a lot of others to lose some.
P. Gunasegaram’s article entitled “A campaign to educate credit card issuers” is interesting.
But another important interest charge also needs to be highlighted. Do you know that if you do not make full payment on or before the due date, you lose the 20 days credit free period for both the current and new transactions posted on the statement?
In addition to the RM50 late payment charge, the finance charge is even higher.
For example: You receive the September statement on Oct 5 and the outstanding charge is RM1,200 and you need to settle it by Oct 20.
Say for some reason or the other, you overlook the matter and do not settle the outstanding in full by Oct 20. How much is your finance charge?
Let’s assume you settle the full outstanding of RM1,200 on Nov 5. You’d expect the bank to charge a finance charge of 17.5% pa based on daily calculation from Oct 20 to Nov 5, right?
Wrong. The bank will compute the interest outstanding from the transactions posted date till Nov 5.
In addition, all the new transactions will also attract interest charge. In short, the bank is penalising you twice on the old and new transactions.
If you do not settle the outstanding in full before due date, you lose the 20 days interest free period.
As such, the campaign should also educate the public to settle the full outstanding amount by due date. Banks, of course, will not highlight this point to the public. It’s one of their main revenue streams.
