Seoul, South Korea — LG.Philips LCD reported a double-digit sales gain and strong net income for the fourth quarter.
Sales in the quarter increased by 41 percent to $4.62 billion compared with $3.28 billion in the fourth quarter of 2006.
Net income in the fourth quarter was a profit of $812 million compared with a loss of $186 million the previous year’s final quarter.
Operating profit in the fourth quarter was $928 million compared with an operating loss of $189 million in the fourth quarter of the previous year.
Young Soo Kwon, CEO of LG.Philips LCD, said, “We are delighted with our outstanding performance last quarter and throughout 2007, which was driven by strong global demand and stabilized ASP.” He added, “On an annualized basis, we exceeded our projected cost reduction in COGS per square meter in [U.S. dollars] of 25 percent, reporting a very strong 31 percent annual reduction.”
Ron Wirahadiraksa, chief financial officer of LG.Philips LCD, said that shipments in the first quarter will decrease in the “low-single-digit percentage with a mid-single-digit percentage declining average ASP and a high-single-digit percentage declining ending ASP. We expect shipments in the TV segment to decrease by a high-single-digit percentage with a mid-single-digit percentage declining average and ending ASP. In the IT segment, we anticipate shipments to increase by a high-single-digit percentage with a high-single-digit percentage declining average ASP and a mid-teens percentage declining ending ASP.”
Kwon noted that with the sell down of Philips’ stake below the 25 percent threshold, Wirahadiraksa will step down as joint representative director and chief financial officer at the company’s annual general meeting, in late February. He has been with the company since its creation in 1999.
James Jeong, formerly executive VP and chief financial officer of LG Electronics, will serve as chief financial officer and will begin his duties after that meeting, Kwon said.