LG.Philips goes from red to black with banner 2007

LG.Philips LCD, the world’s second-largest maker of liquid-crystal displays, yesterday reported its biggest gain since 2003 ― 4.32 trillion won ($4.3 billion) in sales in the fourth quarter of last year, a 41 percent on-year increase.
Operating profit also reached 869 billion won for the October to December period, compared with a 177 billion won loss from a year ago, mainly boosted by a rebound in display prices and increasing demand for TVs and computers.
The firm garnered 14.35 trillion won in sales in 2007, up from 10.62 trillion won in 2006. Its operating profit rose from 879 billion won in 2006 losses to 1.5 trillion won in gains this year, the first time the No. 2 LCD maker after Samsung Electronics hit the one trillion won mark since 2003.
“Many external factors paid off, such as increasing demand for LCDs in the world market and our efforts to cut costs. Last year’s profits were much higher than we expected,” said Kwon Young-soo, LG.Philips’ chief executive, in an investor relations meeting at LG Twin Tower in Yeouido, central Seoul, yesterday.
In 2006, as the world’s LCD manufacturers aggressively expanded by establishing more plants, LCD supply outpaced demand, causing prices to hit bottom. But by keeping investment to a minimum, the company increased sales by 35 percent in 2007 from a year ago.
Kwon had a positive outlook for 2008. “With the U.S. expected to convert to digital broadcasting starting in 2009 and the 2008 Beijing Olympics, more LCDs will be bought this year. LCD demand is also rapidly increasing in emerging markets.”
Kwon said the firm would accelerate its efforts to develop more third-generation LCD-related products such as e-book and e-newspaper displays.
“LCD display supply is expected to run short this year and the competition to secure them will be even more fierce,” said Kim Dong-won, a Hyundai Securities analyst.

By Sung So-young Staff Reporter [so@joongang.co.kr]