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LG.Philips Sales Soar 46%, But Earnings Drop

10/11/2005 08:12:00 AM Eastern

Seoul, South Korea — Increased demand for LCD televisions and notebook panels, amidst a strong competitive environment, helped TFT-LCD panels maker LG.Philips increase fiscal third-quarter sales by 46 percent, reaching $2.6 billion, up from $1.8 billion in the third quarter last year.

Third-quarter revenue was led by growing demand for large and wide LCD-TV panels and a stronger pricing environment for notebook panels.

However, operating profit in the third quarter, ended Sept. 30, dropped to $230 million, compared with $246 million in the year-ago period. Net income also took it on the chin in the three months, down to $218 million from a year-on-year $279 million.

In the third quarter, LG.Philips said it enjoyed robust increases in shipments due to growing demand and a stabilizing pricing environment. TFT-LCD panels for desktop monitors accounted for a 45 percent increase in revenue in the third quarter, while TVs accounted for 29 percent and notebook computers 22 percent.

For the nine months, sales rose to $6.9 billion, from $6.2 billion in the same period a year ago.

However, both operating income and net income saw dramatic decreases. Operating income for the nine months slipped to $130.5 million, down from $1.7 billion in the same time frame in 2004, while net income dropped to $182.4 million from a year-on-year $1.6 billion.

LG.Philips reported capital spending of $1.32 billion in the third quarter, down from $1.38 billion in the same three months the prior year.