LG Display Reports Q2 Net Surge

By Greg Tarr -- TWICE, 7/21/2008

SEOUL, SOUTH KOREA — Second-ranked LCD panel manufacturer LG Display reported that its second-quarter net more than tripled from a year earlier due to improved productivity and increased demand for TVs and PC monitors.

LG Display earned $737 million in the three months ending June 30, compared with $221.4 million in the same period last year, the company said in a regulatory filing. Net profit rose 6 percent from the previous quarter.

In the period, LG Display said sales rose 25.5 percent to $4 billion, with operating profits totaling $863 million compared with $146 million a year ago.

The company said its numbers were assisted by a weakening won and strong demand for panels used in PC monitors. Panels used for PC monitors and notebooks accounted for 26 percent of the company's second-quarter sales, while panels used for TVs represented 43 percent, the company said.

Analysts said LG Display ranks second in LCD panel market share to Samsung Electronics, while AU of Taiwan is third in the global market.

Looking ahead, the company acknowledged demand appears to be weakening for LCD panels used in TVs, and the resulting rise in inventory levels caused the company's average panel price to fall 5 percent in the quarter. Total shipments in the quarter rose 3 percent.

The company said it will spend $1.3 billion to construct a new LCD production line in the city of Gumi, South Korea. The sixth-generation line will be used to produce LCDs primarily for computer monitors and notebooks.