hiddenOct 26, 2016 09:42:04 IST
South Korea's LG Display Co Ltd said on Wednesday it expects strong fourth-quarter earnings as it reported better-than-expected July-September operating profit, buoyed by a pickup in panel prices.
LG, which counts Apple Inc and sister firm LG Electronics Inc as customers, had tipped its July-September profits to improve from the second quarter as clients prepared to launch new products such as smartphones.
The world's top liquid crystal display maker said July-September operating profit was 323 billion won ($286.12 million), compared with a Thomson Reuters StarMine SmartEstimate of 307 billion won derived from a survey of 11 analysts.
"The upwards trend of panel prices is expected to continue in the fourth quarter due to the growing trends towards large-size panels," LG Display Chief Financial Officer Don Kim said in a statement.
"In addition, profits in the fourth quarter are anticipated to further improve significantly."
LG narrowly avoided losses in the first two quarters of the year as sluggish global growth undercut demand for consumer electronics, but analysts say panel prices have been rebounding in the second half as smartphone and television makers place new orders to gear up for the year-end holiday shopping season.
The South Korean firm said third-quarter display shipments in surface area terms rose 9 percent from the previous quarter, while average selling prices climbed 10 percent.
Data from researcher IHS shows that panel prices for products such as smartphones, televisions and monitors have been trending higher in recent months, with average prices in certain categories rising more than 10 percent in October from the previous month.
Revenue for the period fell 6.1 percent to 6.7 trillion won, compared with a Thomson Reuters StarMine SmartEstimate of 6.4 trillion won.
Find our entire collection of stories, in-depth analysis, live updates, videos & more on Chandrayaan 2 Moon Mission on our dedicated #Chandrayaan2TheMoon domain.