LG Display: Second Straight Quarterly Loss

Blaming sagging panel prices and decreased consumer demand, LG Display Thursday reported a second straight quarterly loss, posting a first-quarter operating loss of approximately $310 million. Sales fell 12 percent from the previous quarter.

However, the world's second-largest LCD maker said it is cautiously optimistic that the market will show improvement and believes that LCD shipments will rise in the second quarter.

"The current TV panel shortage will likely continue until end June," said Choi Hyung-Seok, vice president of TV marketing, in an analyst call, according to Reuters. "The outlook for the third quarter is still uncertain, but we are cautiously hopeful."

Market analysts seemed to agree with the Korean-based company's outlook.

"LG Display's earnings will continue to show gradual recovery this year, but though they won't fall further, it won't be easy for LCD prices to actually rise again," Mirae Asset Securities analyst Lee Hak-Moo told Reuters. "The market sees strong demand from China for LCD TVs, and the U.S is likely to show steady demand as well."

Daishin Securities analyst Kang Chung-Wong also sees a more positive future for the company.

"The flat-panel market has already hit bottom and probably so have LG Display's earnings. We think the numbers will keep improving from here on," he told Reuters.

On Wednesday LG confirmed that it is trying to work out a deal with Sony to provide it with LCD panels for televisions, reported The Korea Times.

"LG Display has offered the Tokyo-based company supplies of 37-, 42- and 47-inch LCD panels," CEO Kwon Young-soo told reporters. These sizes are not supplied by S-LCD, the Samsung-Sony joint venture.

"We are waiting for a response from Sony, but there's no reason for Sony to refuse such a deal," he added.

The company's rival, No.1 LCD maker Samsung, is set to report earnings next week.

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