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LAS VEGAS - LG Display, the world’s largest producer of flat screens used in televisions, computers and phones, admits 2011 was a letdown in terms of profit.

But the company’s new CEO Han Sang-beom likes his chances for a turnaround this year, with the prices of liquid crystal displays (LCDs) expected to stabilize in the coming months and the demand for large televisions and other LCD-based products likely picking up ahead of the London Olympics.

``The demand for televisions will rise due to major sporting events like the Olympics and Euro 2012,’’ he said at the sidelines of the Consumer Electronics Show in Las Vegas.

Han, who recently replaced Kwon Young-soo at the helm, conceded that the company ultimately failed to achieve a turnaround in profit last year but stressed that things can only get better.

He anticipates LCD prices will start to rebound in the latter part of the first quarter and also expects a boost from television makers looking to restock inventories ahead of new product announcements, which could be aplenty this year.

LCD prices are a key indicator for LG Display’s business health. Traditionally, the second half of the year is stronger for LCD makers, due to stronger demands during the yearend holiday season.

However, heightened uncertainty surrounding the European debt crisis and other global economic issues dampened shopping spirits this time around.

``Market conditions have been improving from what we forecast in October. LG Display is currently running at full capacity,’’ said Han, denying rumors that the company is planning to issue new shares.

``We will have no big problems because we still have a good cash flow, thanks to our extended period of lucrative business.’’

LG Display, which competes with cross-town rival Samsung Electronics for supremacy in LCDs, posted its biggest-ever quarterly loss in the third quarter of last year, its fourth straight quarter in the red.

By Kim Yoo-chul



# The Korea Times [JAN 10 2012]