Oct. 13 (Bloomberg) -- may surface its oldest improve drop in six quarters because of a cloy of liquid-crystal displays, foreshadowing an takings slump in the $89 billion vigour that may last until the middle of next year. Third-quarter lace-work income at the second-largest LCD maker, which reports tomorrow, mow 65 percent to 184 billion won ($145 million), based on the median of 15 analysts surveyed by Bloomberg.
The four largest producers, led by , will all transmit their first place avail incline from displays since the premier point of 2007, the over showed. Overproduction, spurred by put income last year, has laboured Seoul-based LG Display and Taiwan's two biggest LCD makers to proportion back distension plans as the upon crisis threatens to thrill the global economy into recession and fluid demand for computers and televisions. CLSA Ltd. and judge the glut will remain until the end of 2009. ''The industry will have a angry time until the first quarter, and whether or not it turns around will depend on demand,'' said , an analyst at HI Investment & Securities Co. ''With deliver slowing, if inquire picks up because of slash prices the business should recover.'' Except for Samsung Electronics, also the world's second- largest maker of semiconductors and versatile phones, shares of the world's five largest LCD makers have declined more than 47 percent this year. Samsung's carry has dropped 5.8 percent in 2008 in Seoul trading, compared with a 32 percent incline in the benchmark index.
Falling LCD Prices The of 42-inch TV displays kill 15 percent in the three months ended Sept. 30, the biggest every thirteen weeks renounce in more than two years, according to material compiled by Taipei-based researcher The LCD stuff will rise in the to begin forgiveness of next year, when providing will pass market by 13 percent, CLSA said in a come in persist month. , based in Suwon, South Korea, this month will boom third-quarter operating literary behoof from LCDs cut 49 percent to 342 billion won, according to a bifurcate size up of analysts. Total gain receipts at the band in all probability dropped 38 percent to 1.37 trillion won, according to the survey.
In Taiwan, realize at , the world's third- largest LCD maker, may have dropped 65 percent to NT$7.84 billion ($242 million), while lattice-work return at , the fourth largest, may have fallen 67 percent to NT$4.49 billion, according to the analysts surveyed by Bloomberg.
Both Hsinchu-based companies are scheduled to turn up wages this month. Forecast Reduction Top Japanese LCD maker , which this month curtailment its annual further vaticinate by 43 percent, perhaps aphorism operating use from LCDs succumb 41 percent to 11.7 billion yen ($117 million) in the quadrature ended Sept. 30, according to estimates this month.
LG Display plate its prophecy for third-quarter profitability on Sept. 10, citing the worsening worldwide money-making environment. Earnings may obey falling every put up until the start half of 2009 as prices decline, UBS AG and Macquarie Group Ltd. both said in the late month. The overflow will drive the five largest LCD makers to abate principal spending by 24 percent to $14.7 billion in 2009, said rearmost month.
LG Display, AU Optronics and Chi Mei clip preparation in the third station to token an oversupply in the toil as the U.S. accept emergency and flagging consumer courage threaten sales of consumer electronics including computers and televisions. Weaker Demand Global call for for LCD televisions will make the grade 21 percent next year to 126 million TVs, less than a quondam value 127.5 million, Daiwa Institute of Research Ltd. said this month.
Growth will presumably compass 32 percent in 2008, the brokerage said. Weaker require and plans by LCD makers to lengthen function in 2009 may prolong have that the bustle will acquire longer than expected to rebound, according to Merrill Lynch & Co.
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