LG Display Revenues Decline 12% Q/Q in Q1’09

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On April 16, 2009, LG Display announced its unaudited earnings results for Q1’09, ending March 31, 2009. Sales in Q1’09 shrank 12% Q/Q and 9% Y/Y to KRW3.7 trillion. The world’s second largest LCD manufacturer also reported an operating loss of KRW412 billion, significantly more than the KRW288 billion the company lost in Q4’08. LGD pointed to a 12% Q/Q decline in the ASP (Average Selling Price) of LCD panels.

Confidence Young Soo Kwon, CEO of LG Display displayed confidence stating, “LCD demand is stronger than anticipated and prices are showing signs of recovery. LG Display stands apart from its peers in terms of market share, cost competitiveness and supply capacity. We are well positioned to achieve an early turnaround when market conditions improve.”

Shipment Down LGD shipped a total of 3.75 square meters of net display area in Q1’09, down 3% Q/Q. On a revenue basis, LCD panels geared for TV applications captured 56%; notebook PC applications grabbed 23% and LCD monitor applications took 16%. Small/medium LCD panels geared for mobile applications accounted for just 5% of revenues in Q1’09.

Utilization Rate Surge LGD’s LCD fab utilization rates increased to 93% in Q1’09 from just 80% in Q4’08. Inventory remained at a healthy 14 days. The company cut its manufacturing costs by 10% Q/Q based on COGS per square meter in US dollars. The ASP per square meter of net display area shipped was US$669, down 12% Q/Q.

Positive Outlook LGD expects total net display area shipments to increase by mid- to high-twenties percentage in Q2’09. COGS per square meter is expected to decrease by mid-single digit percentage.

Source: LG Display

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