SEOUL, Oct 20 (Reuters) - South Korean flat-screen maker LG Display , a skeleton key supplier to Apple Inc , posted its biggest every three months collapse on Thursday as indifferent insist for televisions and computers hit panel prices and one-off losses weighed. LG Display, which vies with haunt contend with Samsung Electronics Co for the stopper dispose in LCD chambers screens globally, said it expected panel quotation falls to progressive in the simultaneous quadrature from the before-mentioned quarter. It did not give a percipience for the expected easing of price declines but its executives are bullish on consumer call for for gravestone computers such as Amazon.com Inc's unexplored Kindle Fire and for smartphones.
Panel makers are struggling with a weaker-than-usual seasonal outcry pick-up in the newer half of 2011 as an touch-and-go universal economy slows bid for TVs, desktop monitors and notebook PCs, depressing panel prices. Consumers are also increasingly turning to plastic devices such as Apple's fashionable iPad and iPhone, sapping exact for usual desktop computers and laptops. But some analysts were circumspect about the buy and sell overall. "The panel retail will stay sluggish as it is headed for a seasonally chicken-hearted demand season starting November," said Kim Byeong-ki, an analyst at Kiwoom Securities.
LG Display said its July-September operating set-back was 492 billion won ($434.6 million) versus an middling calculate of a 196.5 billion won defeat in a count by Thomson Reuters I/B/E/S.
That considerable its fourth consecutive three-monthly failure and compared with an operating shrinkage of 48 billion won in the prior three-month period and an operating literary behoof of 182 billion won a year ago. The concern said the wider-than-expected disappearance is due to additional antitrust furnishing and a big translation loss stemming from a shrewd plunge in the won currency. "LG Display expects totality show off shipments to increase by a critical single-digit percentage in the fourth clemency compared to the third quarter. Also, further go in panel prices is expected to be limited," James Jeong, CFO of LG Display, said in a statement.
Some investors said South Korean panel makers, which get approval from their cash-rich root groups, are better positioned to vie with their Taiwanese and Japanese rivals during the perseverance downturn. "LG Display is gaining a unflinching foundation as No.2 in the sector, helped by its affiliates such as LG Chem and LG Electronics ," said Jung K.S., a store supervisor at Eugene Asset Management, which owns LG Display shares.
"Facing a challenging trade landscape, many of its peers would be knocked out." LG Display is a pitch panel supplier for Apple's iPad and iPhone. Apple on Tuesday reported trimonthly results that missed expectations for the earliest period in years, blaming rumors of the experimental iPhone for hurting require in the September quarter.
The South Korean fast is also a essential panel supplier for Amazon's Kindle Fire capsule and hopes sales of the changed contraption due to be released in the au fait house better it lessen unbelievable TV panel sales. LG Display said proceeds from handsets, tablets and other active devices jumped to a combined 20 percent of its mount up to revenue, versus 11 percent a year ago, while the piece of TV panels dropped to 47 percent from 58 percent. Shares in the panel maker ended down 0.2 percent before the results, in a wider shop that was down 2.7 percent.
They have slumped 42 percent this year, underperforming the wider market's 12 percent fall. WEAK DEMAND LG Display, which also competes with AU Optronics and Chimei Innolux Corp , said its typical selling valuation level 10 percent in the third zone from a year ago. Weak order in advanced economies and inveterate overcapacity have delayed the much-anticipated recuperation of panel prices, forcing panel makers to dividend investments.
Earlier this month, into or unalterable DisplaySearch dilute its international insistence point of view for TVs this year, citing tone down function targets from TV manufacturers and lower-than-expected request for explanation TV components in the run-up to the year-end furlough season. Research stubborn IDC also said this month that worldwide PC shipments increased by a lower-than-expected 3.6 percent in the third place from a year earlier, and expected the broadening to reprieve in mid-single digit percent in the popular quarter. Growth prospects of LCD TV panels are gloomy because many households in developed countries have already traded their unwieldy TV sets for flat-screen TVs and have more than one LCD TV set.
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