LG Display swings to quarterly loss on fine, LCD price fall

By @ibtimes on

LG Display, the world's No.2 LCD flat screen maker, posted its first quarterly loss in seven quarters, hit by a $289 million price fixing fine and as panel prices plunged on weak demand from television makers.

LG Display, which competes with bigger rival Samsung Electronics Co, said on Friday its October-December operating loss was 386.9 billion won ($344.2 million), worse than a consensus forecast of a 275 billion won loss polled by Thomson Reuters I/B/E/S.

According to StarMine's SmartEstimate, which places more weight on recent forecasts by top-rated analysts, LG Display was expected to report 405 billion won of operating loss.

In December, LG Display, Taiwan's Chimei Innolux, and three other firms, were fined a total of 649 million euros ($873.4 million) by EU regulators for fixing LCD prices. LG was hit by 215 million euro penalty.

Panel prices are falling sharply as weak sales growth of flat-screen TVs have created excess supply, forcing panel makers to cut output.

Shares in LG Display, which competes with sector leader Samsung Electronics Co and Chimei have fallen nearly 5 percent over the past three months, lagging a 14 percent gain in the wider market.

(Reporting by Miyoung Kim; Editing by Dhara Ranasinghe)

Join the Discussion