Bloomberg News

LG Display Fourth-Quarter Loss Narrows on 3-D, Mobile Demand

January 29, 2012

(Updates with share price in fifth paragraph.)

Jan. 27 (Bloomberg) -- LG Display Co., the world’s second- largest maker of liquid-crystal displays, reported a fourth- quarter loss narrower than estimates, helped by demand for panels used in 3-D televisions and mobile devices.

The net loss was 6.3 billion won ($5.6 million) in the three months ended Dec. 31, compared with a loss of 268.4 billion won a year earlier, according to a filing by the Seoul- based company today. The average of 25 analyst estimates compiled by Bloomberg was for a net loss of 83.9 billion won.

The company, which supplies screens for Apple Inc., is counting on specialty products to withstand an industry slowdown caused by stagnant sales of conventional liquid-crystal-display televisions. Widening adoption of 3-D TVs and surging demand for smartphones and tablet computers may help the company boost profit and take on bigger competitor Samsung Electronics Co.

“Those high-value products are making a big contribution to earnings, and the trend will continue,” said Kang Yoon Hum, a Seoul-based analyst at NH Investment & Securities Co. “They have become defining factors that differentiate the company from competitors.”

LG Display rose 2 percent to close at 28,550 won in Seoul, while the benchmark Kospi index gained 0.4 percent.

LCD Shipments

Global LCD TV shipments were probably 206 million units last year, falling short of an earlier projection of 211 million units, according to an October forecast by research company DisplaySearch.

LG will probably ship a similar amount of panels in the first quarter as it did in the previous three-month period, with prices remaining stable, the company said in a statement today. While TV manufacturers’ inventory restocking may boost sales, the global economic slowdown may damp demand, according to the statement.

The company’s parent group said Jan. 13 it will reduce spending by 15 percent this year, citing slowing consumer spending in the U.S. and Europe as a risk. Samsung said today capital expenditure for its panel business this year will be 6.6 trillion won.

--Editors: Suresh Seshadri, Terje Langeland

To contact the reporter on this story: Jun Yang in Seoul at jyang180@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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