LG Display swings to Q2 profit on strong TV demand

LG Display swings to Q2 profit on strong TV demand
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First Published: Thu, Jul 16 2009. 12 14 PM IST
Updated: Thu, Jul 16 2009. 12 14 PM IST
Seoul: South Korea’s LG Display returned to a quarterly profit after two straight quarters of losses, spurred by robust demand for flat-screen TVs and strong LCD panel prices due to shortages of key inputs.
The world’s No. 2 maker of liquid crystal display (LCD) screens, used in television sets, posted on Thursday a 302 billion won ($238.5 million) net profit in the second quarter, much larger than a forecast of 161 billion won.
The figure compares with a net profit of 759 billion won in the year-ago period but marks a rapid turnaround from a 255 billion won net loss posted in the January-March quarter.
Operating profit in April-June was 218 billion won, also higher than a 157 billion won profit forecast by analysts in a Reuters poll.
The popularity of LCD TVs in North America and China is helping the industry rebound faster than expected from a slump in late 2008, and makers are scrambling to restart plants and secure raw materials. The sector is one of the few bright spots in a weak technology industry.
But the outlook is clouded due to rapid growth of output and a fragile global economy. Some analysts warned prices and sales may plummet in the fourth quarter when demand usually weakens.
LG Display, which competes with bigger rival Samsung Electronics and Taiwan’s AU Optronics, posted a 302 billion won ($238.5 million) net profit in the second quarter, much larger than a forecast of 161 billion won.
The figure compares with a net profit of 759 billion won in the year-ago period but marks a rapid turnaround from a 255 billion won net loss posted in the January-March quarter.
Operating profit in April-June was 218 billion won, which beat a 157 billion won profit forecast by analysts in a Reuters poll. Sales rose 16% from a year ago to 4.89 trillion won on a consolidated basis.
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First Published: Thu, Jul 16 2009. 12 14 PM IST