LG Display just released Q2’08 results and it seems the company is doing just fine despite the economy. AUO didn’t fair too well in its recent announcement. Total revenues increased 4% Q/Q and 26% Y/Y to KRW 4.211 billion in Q2’08. Operating profits were up slightly by 0.9% Q/Q of 492% Y/Y to KRW 889 billion. Net income also increased almost 6% Q/Q to KRW 759 billion.
In Q2’08, 3.3 million square meters of net display area was shipped representing an increase of 3% Q/Q. Panels for LCD TV applications accounted for 43% of revenues while both notebook PC and LCD monitor had shares of 26% each. Small/medium LCDs accounted for just 5%.
The average selling price (ASP) per square meter of net display area shipped in Q2’08 was US$1,274, down 5% Q/Q. In the same time frame, cost of goods sold per square meter of net display area declined 5% Q/Q on a US$ basis.
Now here comes the interesting part:
LG Display expects total net display area shipment to increase by a low twenties percentage in the third quarter. COGS reduction per square meter is expected to be a mid to high single digit percentage in the third quarter.
LG Display is expecting a pretty decent third quarter. This is to be expected since that has been the trend for many years. Well, this time, I think they are going to be in for a surprise when demand doesn’t increase like it did every year for the last several years. We all know the main reasons, but to reiterate, disposable income does not exist with difficulty in getting credit and the increase in gas prices. There is also sizable inventory buildups in the LCD supply chain.
In other news, LG Display’s BOD approved investment toward another G6 LCD fabrication plant in Gumi, South Korea. The G6 fab will be focused on manufacturing 16:9 notebook PC and LCD monitor panels. The total investment will be KRW 1.361 trillion and is expected to commence production in Q2’09. This is also interesting because there will be massive oversupply of LCDs in 2009. Good for consumers. Bad for LCD manufacturers.
Source: LG Display
[tags]LG Display, Display Manufacturer, LPL, G6[/tags]