LG Display sales rise, profit drops

By Kim Yoo-chul

LG Display, the world's second-largest liquid crystal display (LCD) maker behind Samsung Electronics, posted a new quarterly-high of 6.7 trillion won (about $5.9 billion) in revenue for the July-Sept. period as it maintained a healthy volume in shipments.

However, the company’s operating profit dipped more than 72 percent year-on-year to 182.1 billion won (about $162 million) in the third-quarter due the sluggish prices of the panels that reflect the slowing demand for flat-screen televisions.

Its net profit of 224.2 billion won was more than a 60 percent drop from last year's 595.3 billion won.

LG Display’s chief financial officer Jeong Ho-young was pessimistic about the company’s outlook for the remainder of the year, as the demand for LCD-embedded consumer electronics products like televisions, mobile phones and computer monitors continues to slide.

Global flat-screen prices, which have fallen about 30 percent from April to September, are expected to see a further decline with television makers looking to boost demand with lower prices.

Fall is a traditional low-demand season for the electronics industry, and the companies involved in the parts business, including flat-screens and chips, have to endure the highly cyclical and volatile nature of the industry.

LCD makers usually use the latter part of the year to lower their inventory levels to prepare for the New Year.

Net profit also decreased by 62 percent to 224.2 billion won.

The average selling price (ASP) of LG Display’s products fell by 10 percent from the previous quarter to $778 per unit, though shipments increased by 12 percent quarter-to-quarter, the company said.

``LG raised its market share by about 3 percent in our core products such as panels for televisions and notebooks. Large-sized panel shipment was also boosted thanks to the stable demand for premium televisions such as light-emitting diode (LED)-backlit LCD televisions,’’ said LG Display spokesman Sohn Young-june.

LG Display says its panels for television accounted for 58 percent of its shipments, while computer monitors and screens for laptop computers accounted for 19 percent and 15 percent of its products, respectively.