PREVIEW-LG Display, Taiwan LCD makers Q3 profits to sag
* What: Q3 earnings for LG Display, AU and Chi Mei
* When: LG Display (Oct 14); AU (Oct 23); Chi Mei (Oct 24)
* Profits to fall on weaker screen prices and meagre demand
* Losses likely in coming quarters as downturn spreads
By Rhee So-eui
SEOUL, Oct 9 (Reuters) - South Korean flat screen maker LG Display Co Ltd (034220.KS) and two smaller Taiwanese rivals are expected to post sharp falls in profits in the third quarter, hit by weakening demand and falling panel prices.
As the global financial crisis hits consumer demand, television and monitor screen makers will post even more losses in the coming quarters despite efforts to control costs and output, analysts say.
Consumers look to be in no rush to spend on big ticket items such as liquid crystal display TVs in the run up to the holiday season, even as panel prices slide.
"The economy is so weak. At this rate, who would buy a TV at the year-end?" said Lee hak-moo, an analyst at Mirae Asset Securities.
The LCD industry's downturn comes earlier than expected after a strong first half, when supply was tight and prices held firm.
"There's no visibility in earnings," said Jeff Kim, an analyst at Hyundai Securities. "Things will turn up only in the second half of next year."
LG Display (LPL.N), the world's second-biggest LCD panel maker, is forecast to report a 191.5 billion won ($134 million) net profit in the third quarter to Sept. 30 when it reports next Tuesday, according to 8 analysts surveyed by Reuters.
That is down from 524 billion won earned in the year-earlier period and 759 billion won in the second quarter.
Consolidated third-quarter sales are expected at 3.93 trillion won, steady from 3.95 trillion won a year earlier.
LG's average panel price likely fell nearly 20 percent in July-September after losing only 5 percent in the previous quarter, analysts estimate.
LG trails domestic rival Samsung Electronics Co Ltd (005930.KS) but ranks ahead of Taiwan's AU Optronics Corp (2409.TW) (AUO.N) and Chi Mei Optoelectronics Corp (3009.TW). Continued...
