Display maker posts record sales in second quarter


LG Display, Korea’s display panel giant, is gearing up to boost the production of high-end, premium liquid crystal displays for small- and mid-size mobile products.

The company said Thursday that its board of directors reached a decision to invest over 1.2 trillion won ($1 billion) to transform part of its sixth generation manufacturing line to produce low temperature poly-silicon displays.

LTPS is more energy efficient and offers higher pixel density or higher image resolution than matured amorphous silicon (a-Si) display technology, an industry source noted.

LG Display plans to start changing part of its a-Si line to roll out 20,000 LTPS sheets per month by the end of 2013.

This decision came as demand for smart devices will increase going forward, LG Display said citing a forecast by mobile research firm Strategy Analytics that smartphones will account for about 50 percent of the global mobile phone market in 2013, and increase to 60 percent in 2015, from 32 percent in 2011.

Also, the company is focusing on developing and producing such high-end displays as they are considered its growth driver, contributing to record sales in the second quarter of this year.

LG Display posted the biggest quarterly sales of over 6.9 trillion won from April to June, up 14 percent from some 6 trillion won a year earlier, according to a regulatory disclosure.

It attributed the highest revenue to growing business in premium display products such as high-definition panels for smartphones.

However, due to paying some 400 billion won to settle a class-action lawsuit for price fixing in the U.S., LG Display had an operating loss of 25.5 billion won in the second quarter, down from 48 billion won a year ago. It posted a net loss of 112 billion won.

Its earnings before interest, taxes, depreciation and amortization, or EBITDA, reached 1.04 trillion won, up from 845 billion a year earlier.

The company expects to achieve single-digit growth in the global shipment of its products in the third quarter, while seeing display price stability. Also, the global economic slowdown is likely to have a limited effect on the demand-side, and the company’s high-end tech products will continue to contribute to its business, said LG Display Chief Financial Officer Jung Ho-young.

Shares of LG Display rose 4.04 percent, or 850 won, at 21,900 won Thursday.

By Park Hyong-ki (hkp@heraldcorp.com)