(Adds comments from LG Display, background)
* Q2 operating profit down 55 percent on year
* Says Q3 revenue, profit to improve
* Apple launches, TV demand to boost H2 results -analysts
SEOUL, July 23 LG Display Co Ltd on
Wednesday said quarterly profit fell more than 50 percent for
the second time in three quarters, pulled down by a stronger
South Korean won and subdued demand for personal
computers (PC) and tablet devices.
The world's No.1 maker of liquid crystal displays (LCD) had
forecast a pickup in panel shipments during April-June, while
analysts were expecting stronger second-half earnings as TV
demand in key markets improved.
LG Display, which counts affiliate LG Electronics Inc
and Apple Inc as major customers, on
Wednesday said shipments volume improved from a year earlier but
that the average sales price of panels slipped further from
For April-June, LG Display reported a 55.4 percent fall in
operating profit to 163 billion won ($159.23 million), compared
with a 184 billion won mean estimate of 37 analysts polled by
Thomson Reuters I/B/E/S. Revenue fell 9 percent on year to 6
"With seasonal demand growth and the trend toward larger
size panels for TVs, we anticipate both revenues and profits to
improve in the third quarter," LG Display Chief Financial
Officer Don Kim said in a statement following the earnings
During the quarter, LG Display suffered from the strength of
the local currency, which on average appreciated by more than 9
percent against the U.S. dollar in April-June from a year
earlier. That marked the biggest percentage gain since the third
quarter of 2011.
Subdued demand for key electronics products also weighed on
results. PC shipments were flat in April-June, according to
researcher Gartner, which was better than analysts had expected
but still showed that a major pickup may be some way off.
Global tablet shipments in the first quarter also shrank in
annual terms for the first time, researcher NPD DisplaySearch
said earlier in July, suggesting weak panel demand for such
Shares of LG Display closed down 2.7 percent ahead of the
earnings release, compared with a flat benchmark index.
One analyst said the decline was exacerbated by concern of
weaker revenue from major client Apple, which announced earnings
"[Apple CEO] Tim Cook said during the (earnings) conference
call that LCD prices fell in the June quarter and will likely
slip further in the September quarter," said Daewoo Securities
analyst Hwang Joon-ho.
($1 = 1023.6500 Korean Won)
(Reporting by Se Young Lee; Additional reporting by Lydia Lim;
Editing by Christopher Cushing)