LG Display suffers losses| 24.01.2011
LG, the world’s second largest manufacturer of flat-panel televisions, reported loss of his unit for the production of LCDs in the fourth quarter ended December 31, 2010. As
according to Bloomberg, LG Display unit has suffered losses for the first time since the company was convicted of price collusion with other Asian manufacturers of LCD displays.
The net loss of the division of LG Display in the fourth quarter was of 268.4 billion won (238,8 million dollars). However, experts interviewed by Bloomberg, expected an even greater loss for
their forecasts averaged 413 billion won. Operating loss of the division was 386,9 billion won (344,2 million dollars), including punitive damages for violation of the antitrust laws on
the European market. As previously reported, in December the European Commission fined several Asian manufacturers of LCD displays for price collusion, for a total amount of 649 million euros. The amount of the penalty LG caught
involved in the price fixing on LCD panels amounted to 215 million euros.
The decrease in financial results in the company explain a significant reduction in the price of the LCD panel. Moreover, the manufacturer suggests that this trend, which in the fourth quarter of 14%,
will continue for the near future. However, LG hopes to gradually restore its financial results due to the growing demand for displays for mobile devices.