Seoul, Korea - LG Display reported a reversal in the fiscal third quarter with a major net loss and lower sales.
The company's net loss for the quarter ended Sept. 30 was 688 billion won compared with net income of 224 billion won in the third quarter of 2010.
Sales in the third quarter of 2011 decreased by 6 percent compared with 6,698 billion won in the third quarter of 2010.
Operating loss in the third quarter of 2011 was 492 billion won. This compares with an operating profit of 182 billion won in the third quarter of 2010.
Due to sharp rise in the exchange rate at the end of the quarter, net foreign exchange loss associated with factors such as customer advances and liabilities denominated in foreign currency, deepened the deficit in the income statement, LG Display said. "However, due to low portion of these liabilities nearing their maturity date for the next three months, it is highly likely that the net foreign exchange loss can be reverted into the net foreign exchange gain if we factored in the projected foreign exchange movement," the company said.
"LG Display has been building differentiated competencies to gain market share, cost competitiveness and product superiority. As a result, we were able to maintain our competitive position despite the challenges in the economy such as the global recession. It is regretful that there was an increased deficit in the income statement due to exchange rate rise at the end of the quarter which translated to foreign exchange losses," noted Young Soo Kwon, CEO of LG Display, in a statement.
LG Display shipped a total of 8.10 million square meters of net display area in the third quarter of 2011, an increase of 9 percent quarter on quarter.
TFT-LCD panels for TVs, monitors, notebook PCs, smartbooks and mobile applications accounted for 47, 19, 14, 11 and 9 percent, respectively, on a revenue basis in the third quarter.
In the fourth quarter, "LG Display expects total display shipments to increase by a low single digit percentage in the fourth quarter compared to the third quarter. Also, further decline in panel prices is expected to be limited." said James Jeong, CFO of LG Display. "Although uncertainty over market demand is expected to persist in the fourth quarter LG Display will expand the portion of its premium products based on differentiated technology. Meanwhile, we will continue aggressive cost reduction efforts and work under tighter cash flow management to improve profitability while fostering future growth."