ID :
24485
Tue, 10/14/2008 - 18:46
Auther :
Shortlink :
http://m.oananews.org//node/24485
The shortlink copeid
LG Display Q3 net down 44 pct
SEOUL, Oct. 14 (Yonhap) -- LG Display Co., the world's No. 2 maker of liquid crystal displays (LCDs), reported Tuesday that its third-quarter net income fell nearly 44 percent from a year earlier amid a global economic slowdown.
LG Display earned 295 billion won (US$245 million) in the three months ended
Sept. 30, down 43.7 percent from 524 billion won a year earlier, the company said
in a regulatory filing. Its bottom line also plunged 61.1 percent from the
previous quarter.
Sales slipped 2.3 percent on-year to 3.86 trillion won, with operating profit
plummeting 63.3 percent to 254 billion from 693 billion won a year earlier.
Shares in LG Display rose 9.2 percent to end at 28,500 won in the Seoul bourse.
The earnings were announced after the market closed.
The results, however, were seen as relatively higher than overall market
expectations. Forecasts for the company's quarterly operating profit ranged
between 200 billion won and 250 billion won.
Overproduction, spurred by record earnings last year, has forced global display
makers to scale back on investment as an ongoing financial rout threatens
consumer demand for electronic goods.
LG Display cut its forecast for third-quarter earnings earlier this month, citing
a supply glut as pushing prices down and a worsening global economic environment
that is sapping consumer spending.
The average price-per square meter of LG's displays stood at US$992, down 22
percent compared to the company's display price in the second quarter, according
to the company.
Kwon Young-soo, chief executive of LG Display, said in a statement that the
company recognizes the "current challenges," saying that the company is preparing
itself to reinforce its cost competitiveness.
"We continued to stay alert and pressed on with efforts toward overall reform of
our business structure. That has made us more resilient to market fluctuations,"
Kwon said.
The company also plans to cut down production by 10 percent in the fourth quarter
amid the oversupply in the market.
Lee Sang-wan, head of the LCD division at Samsung Electronics Co., LG Display's
larger rival, said earlier in the day that his company also plans to cut down
their investment on LCD output next year to cope with slowing demand. He did not
give further details on the investment cut.
LG Display earned 295 billion won (US$245 million) in the three months ended
Sept. 30, down 43.7 percent from 524 billion won a year earlier, the company said
in a regulatory filing. Its bottom line also plunged 61.1 percent from the
previous quarter.
Sales slipped 2.3 percent on-year to 3.86 trillion won, with operating profit
plummeting 63.3 percent to 254 billion from 693 billion won a year earlier.
Shares in LG Display rose 9.2 percent to end at 28,500 won in the Seoul bourse.
The earnings were announced after the market closed.
The results, however, were seen as relatively higher than overall market
expectations. Forecasts for the company's quarterly operating profit ranged
between 200 billion won and 250 billion won.
Overproduction, spurred by record earnings last year, has forced global display
makers to scale back on investment as an ongoing financial rout threatens
consumer demand for electronic goods.
LG Display cut its forecast for third-quarter earnings earlier this month, citing
a supply glut as pushing prices down and a worsening global economic environment
that is sapping consumer spending.
The average price-per square meter of LG's displays stood at US$992, down 22
percent compared to the company's display price in the second quarter, according
to the company.
Kwon Young-soo, chief executive of LG Display, said in a statement that the
company recognizes the "current challenges," saying that the company is preparing
itself to reinforce its cost competitiveness.
"We continued to stay alert and pressed on with efforts toward overall reform of
our business structure. That has made us more resilient to market fluctuations,"
Kwon said.
The company also plans to cut down production by 10 percent in the fourth quarter
amid the oversupply in the market.
Lee Sang-wan, head of the LCD division at Samsung Electronics Co., LG Display's
larger rival, said earlier in the day that his company also plans to cut down
their investment on LCD output next year to cope with slowing demand. He did not
give further details on the investment cut.
