LG Display Profit Misses Estimates on Sluggish TV, PC DemandJungah Lee
LG Display Co., the world’s second-largest maker of flat-panels, posted second-quarter profit that missed analyst estimates on slower consumer demand for screens used in personal computers and televisions.
Net income, excluding minority interest, was 105.7 billion won ($94 million) in the three months ended June, compared with a 111.2 billion-won loss a year earlier, the Seoul-based company said in a statement today. The result compares with the 205.9 billion-won profit average of 13 analyst estimates compiled by Bloomberg.
LG Display has struggled to boost profit as consumers put off purchases of high-margin mobile devices and TVs amid slow growth in the global economy. Shipments may rise at a “low to mid single digit” growth rate in the third quarter with prices to stabilize about the middle of the period after a short-term decline, Chief Financial Officer James Jeong said.
“Demand for personal computers and TVs, which account for about 70 percent of the total display market, is low,” Hwang Joon Ho, a Seoul-based analyst at Daewoo Securities Co., said by phone before the earnings release. “Growth for high-margin devices, including smartphones and TVs, will remain slow.”
LG Display fell 3.1 percent to close at 26,950 won in Seoul trading today. South Korea’s benchmark Kospi index declined 0.6 percent.
Operating profit, or sales minus the cost of goods sold and administrative expenses, was 365.9 billion won on sales of 6.57 trillion won.
Worldwide shipments of liquid-crystal-display TVs may total 208.8 million units this year, less than the 215.5 million projected earlier, market research firm TrendForce said in a June 13 report.