Despite Losses, LCD Company Stays Positive
The LCD market has bottomed out and TV panel prices are anticipated to recuperate due to requests for small-sized flat screen TVs, the head of LG Display Co Ltd announced.
Chief executive Kwon Young-soo added that mobile display is the focal point of the world’s second-largest LCD maker, which primarily produces TVs, computer monitors and notebook panels.
The South Korea-based company LG Display announced on Friday its dire quarterly loss, targeted by $400 million U.S. price-fixing fines and declining screen costs.
LCD makers should have additional losses in the beginning of 2009 as consumer want for electronics weakens in the increasingly tough global market, analysts noted.
However, Kwon anticipates that prices will recover before long.
"The good news is that we’ve reached a bottom," he said on Sunday.
"TV panel prices will likely stop the downward trend and recover," Kwon said, adding that low-cost, small LCD are still in demand.
"Consumers are finding a flat-screen TV is worth the money if there were ever to spend on electronics goods, rather than, say, home appliances."
LG Display also announced that they are investing $427 million to build a new production line designed to create LCD screens for mobile devices.
The new line will ensure that the company locks up its place in the budding market for smartphones, Kwon noted.
In the mean time, Kwon anticipated that the LG Display will preserve its client base in the China market regardless of Taiwanese rivals’ attempts to raise their shares.
Taiwan’s AU Optronics Corp and Chi Mei Optoelectronics Corp announced on Friday that they had made supply deals with Chinese TV producers.
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