(2nd LD) LG Display Q3 net jumps 89.5 pct on price hike

(ATTN: RECASTS headline, lead; UPDATES with CEO comments; TRIMS throughout)
By Lee Youkyung
SEOUL, Oct. 15 (Yonhap) -- LG Display Co., the world's No. 2 maker of liquid
crystal display (LCD) panels, said Thursday its third-quarter earnings soared
89.5 percent from a year earlier due to higher prices and increased demand.

Its consolidated net profit stood at 559 billion won (US$483 million) in the
July-September period, compared with 295 billion won a year earlier, LG display
said in a regulatory filing.
Sales rose 54.7 percent on-year to 5.97 trillion won, with operating profit
rising 255.9 percent to 904 billion won, the company said.
The third-quarter bottom line fell slightly short of a median market estimate,
but sales and operating profits were quarterly records, beating analysts'
estimates.
Compared with the previous quarter, the company's net profit was up 85.1 percent
and sales were 22.1 percent higher, LG Display said.
Shares of LG Display closed at 33,250 won on the Seoul bourse, up 0.15 percent
from Wednesday's close. The third-quarter results were released after the market
closed.
LG Display attributed the stellar third-quarter performance to a rise in panel
prices, which stemmed from increased sales in North America and Europe, as well
as higher demand for TV panels from China and Japan.
"LG Display registered strong performances in the third quarter, thanks mainly to
increased demand and higher panel prices," CEO Kwon Young-soo said. "Investment
in new production lines and customer-oriented marketing also contributed."
Although analysts predicted the display industry to see declining profits in the
current quarter as panel prices began to drop from late September, a company
executive said earnings will likely drop less than expected for the fourth
quarter.
"In the fourth quarter, we estimate an upper single-digit increase in production.
The decrease in panel prices is expected to be gradual," Jeong Ho-young, chief
financial officer of LG Display, told analysts at the conference.
He said new investment for next year will be similar to this year's level.
"LG Display invested about 3.5 trillion won this year, and almost the same amount
of money will be invested in 2010 in new plants and equipment, including the
expansion of sixth-generation plants," he said.
Regarding concerns over a global LCD oversupply, he said most manufacturers are
now flexible enough to adjust their production.
"We acknowledge a challenge from the market oversupply, but it is also exciting
because it could further widen the gap between competitive firms and less
competitive ones," Jeong added.
LG Display forecast light emitting diode (LED) panels to account for 20 percent
of the overall display market next year. It plans to produce LED panels in all
available sizes from next year to increase its market share.
ylee@yna.co.kr
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