the republic logo

LG Display's 2Q profit jumps as demand for big ultra-high-definition TV rises, currency rates

bug
Share/Save/Bookmark

SEOUL, South Korea — LG Display Co. said profit for the April-June quarter more than doubled as a stronger won reduced the value of its foreign debt and the World Cup boosted demand for ultra-high-definition TVs.

The South Korean display panel maker said Wednesday its net income reached 256 billion won ($250 million), compared with 105 billion won a year earlier. Operating fell, however, showing that most of the net profit improvement came from the debt revaluation.

Analysts polled by FactSet, a financial data provider, expected profit of 114 billion won.

The panel supplier for Apple Inc. said higher demand for UHD TVs during the World Cup increased panel shipments.

LG Display's parent company, LG Electronics Inc., is among the TV makers betting that a quadrupling of the resolution of high-definition TVs will convince consumers to upgrade.

Consumer interest in UHD TV sets, also known as "4K," is positive for panel makers especially because those advanced TV sets tend to come in big sizes, featuring screens larger than 40 inches.

LG said a slight decline in panel prices during the second quarter was offset by selling more panels.

The company was also helped by the rise of South Korean won, which reduced the size of its foreign currency denominated debt.

Overall sales, however, fell 9 percent to 5.6 trillion won. Operating profit plunged 55 percent to 163 billion won, slightly lower than analysts' forecast.

Think your friends should see this? Share it with them!

All comments are moderated before posting. Your email address must be verified with Disqus in order for your comment to appear.
View our commenting guidelines and FAQ's here.

Story copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2014 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.