LG Display extends output cut as downturn persists

SEOUL, Sept 3 (Reuters) - LG Display Co Ltd (034220.KS) (LPL.N) said on Wednesday it would keep its panel output at 90 percent of normal for now as screen prices remain weak amid sluggish demand for flat-screen TVs and personal computers.

LG Display, the world's second-biggest maker of liquid crystal display (LCD) screens, had initially planned to resume full production in September, after cutting output by 10 percent in late July.

"We will monitor market conditions to decide when we should resume full production," a company spokesman said, adding the industry environment appears weaker than earlier thought.

LG did not give the estimated financial impact of the reduction.

South Korea-based LG and smaller Taiwan rivals AU Optronics Corp (2409.TW) and Chi Mei Optoelectronics Corp (3009.TW) have cut output in recent months, to cope with falling screen prices in the usually strong demand season.

After reaping hefty profits in the first half, LCD makers are suffering from a spreading global downturn that is hitting consumer demand.

Consumers are turning to smaller television sets and flat TV makers such as Sony Corp (6758.T) and Samsung Electronics Co Ltd (005930.KS) have aggressively lowered set prices in a price war.

Citi lowered its target price on LG Display by nearly a third to 37,000 won in a report dated Tuesday, forecasting LG's third-quarter operating profit would drop 81 percent from the second quarter. [ID:nSEO151907]

LG Display shares rose 2.86 percent to 25,200 won, outperforming the wider market's 1.4 percent gain. (Reporting by Rhee So-eui; Editing by Keiron Henderson)