Profits dive 96 percent at L.G. Philips LCD

Profits dive 96 percent at L.G. Philips LCD

L.G. Philips LCD reported a sharp drop in second-quarter profits, but said oversupply issues may be easing up.

Net income at display maker, L.G. Philips LCD, plummeted 96 per cent in the second quarter, although problems of oversupply and falling prices may be easing up.

The company reported net income for the second quarter of 41 billion Korean won ($US40 million as of June 30, the last day of the period being reported), down from 701 billion won in the second quarter of 2004, according to unaudited figures released Monday.

Second-quarter revenue was 2.3 trillion won, down 1 per cent from the second quarter of 2004.

Increased shipments helped offset the effects of falling prices, the company said.

The results appear better when compared with those of the immediate prior quarter.

Revenue was up 12 per cent from the first quarter of 2005, while net income swung from a loss of 79 billion won.

And average selling prices at the close of the second quarter were slightly higher than those at the end of the first, the company said.

L.G. Philips said it expected the market to continue strengthening in the second half of the year. The company is a joint venture between South Korea's L.G. Electronics and the Netherlands' Koninklijke Philips Electronics NV.

As of June 30, it had cash and cash equivalents of 1.3 trillion won and total debt of 3.6 trillion won.

Separately, L.G. Philips saidthat it planned to sell 26.9 million shares of common stock as a follow-on to its initial public offering last year. It will use the money to fund capital expenditures in Korea.

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