LG Display suffers huge Q4 losses, outlook gloomy

(ATTN: UPDATES throughout with analyst's comment, details; AMENDS headline)
SEOUL, Jan. 16 (Yonhap) -- LG Display Co. reported a massive net loss in the
final quarter of 2008 on Friday, hit by a steep drop in panel prices and a hefty
price-fixing fine in the United States.

The short-term outlook for the world's second-largest maker of liquid-crystal
displays remains gloomy amid few signs that panel prices will recover as
consumers balk at buying expensive flat-screen televisions or computer monitors
amid the deepening global economic crisis, analysts say.
The South Korea-based company said it lost 684 billion won (US$503 million) in
the three months ending Dec. 31 last year, compared with a profit of 760 billion
won in the same period a year earlier.
Profits were particularly hurt by a $400 million fine over price-fixing charges
in the U.S.
The fourth-quarter result was slightly worse than a forecast of a 531.9 billion
won net loss made by analysts surveyed by Wisefn Corp., a local financial
information provider.
During the quarter, operating losses totaled 288 billion won, a dramatic reversal
from a profit of 869 billion won for the same period a year earlier. Sales fell
3.8 percent to 4.15 trillion won, LG Display said.
"LG Display is likely to post an operating loss by the second-quarter of this
year with no signs of recovery in demand looming," said Moon Hyun-shik, an
analyst at Meritz Securities Co.
While the pace of price falls slowed in January, Moon expected the pace of
declines would start picking up again from February when LCD makers in Asia
resume production.
LG Display was the LCD industry's first major player to report its fourth-quarter
earnings, helping investors assess the impact of the global economic slump.
Average prices of LG Display panels fell to $766 per square meter in the
fourth-quarter of last year, compared with $1,375 from a year earlier.
In a statement, however, LG Display predicted a "limited decline" in panel prices
during the current quarter.
LG Display recently signed a five-year contract with Apple Inc. to supply flat
panels for the U.S. company's hot-selling iPod music players.
For all of 2008, LG Display's net profit fell 19.1 percent to 1.08 trillion won
and sales rose 13.3 percent to 16.2 trillion won.
Separately, LG Display said it will invest 577.1 billion won ($420.6 million) to
boost output of small-sized flat panels.
LG Display shares rose 5.7 percent to close at 24,100 won on the Seoul bourse.
(END)