LG Philips two quarter turnaround optimistic about the market prospect of LCD

LG Philips LCD announced the day before, its sales in the second quarter of 2005 increased 12% from the first quarter of 2005 increased to $2 billion in 2 billion 230 million dollars, down 1% compared to the same period in 2004. The company expects shipments in the third quarter and average selling price will rise, and maintain the 2005 33.5-43.1 billion capital expenditure budget.

Net profit the companies in the second quarter of 2005 was $40 million, the first quarter was a loss of $76 million, the second quarter of 2004 net profit of $678 million. Increase in shipments offset the impact of the panel price drop.

LG Philips LCD said the second quarter of 2005 for the desktop PC TFT-LCD panel display, notebook computer, TV and other applications were accounted for 53% of sales, 18%, 24% and 5%, while the first quarter of the corresponding data were 56%, 18%, 22% and 4%.

Overall, LG.Philips LCD shipped in the second quarter net display area of 1 million 96 thousand square meters, an increase of 14% over the first quarter. The average selling price per square meter of net display area was $2062, down about 1.1% from the first quarter. Meanwhile, the average price at the end of the second quarter grew by more than the end of the first quarter of 1.6%.

"In the second quarter the market demand for LCD TV panel display and growth." LG.Philips LCD, President and chief financial officer Ron Wirahadiraksa said in a statement. "Because of this demand, we continue to increase the output of the P6 plant. As demand grows, we will continue to strengthen our market position in the second half of 2005. With our P6 plant close to the design capacity in the third quarter, we will be able to further reduce costs, especially in large and wide panel." "We expect to continue to improve the business environment in the first half of 2005." Wirahadiraksa representation. For the third quarter of 2005, we believe that our area shipments will grow by about 15% over the second quarter. We expect the average selling price per square meter of net display area at the end of the third quarter of 2005 compared with the end of the second quarter rose to a single digit."