- Beretta leaves Maryland over gun laws, heads for Tennessee
- Neal Boortz defends Hillary Clinton for representing child rapist
- House task force to recommend National Guard on border, faster deportations
- Top federal judge uses pizza to explain complex Obamacare situation
- Obama, Biden overhaul job training programs
- Drought-plagued Californians turn to paint to keep lawns green
- ISIL now forcing Iraqi shopkeepers to veil mannequins in Mosul
- 11 parents of Nigeria’s abducted girls die
- Genetic mapping triggers new hope on schizophrenia
- Turkish P.M. Erdogan won’t speak to Obama, but he’ll take calls from Biden
LG Display posts profit but iPhone dims outlook
Question of the Day
SEOUL, SOUTH KOREA (AP) - LG Display reported a $299 million profit for the fourth quarter Thursday thanks to mobile product launches by key customers including Apple Inc. but warned that earnings will decrease in the current quarter as demand for iPhones wanes.
The South Korean panel maker said its October-December net profit totaled 319.7 billion won ($299 million) compared with a loss of 6.3 billion won a year earlier when the European Union fined the company 215 million euros for price fixing. Sales rose 32 percent to 8.74 trillion won.
LG forecast a profit drop for the current quarter because it expects to ship fewer panels to TV makers and mobile device makers. In particular, shipments of panels for mobile phones and tablet computers will likely decline to 25 percent of total sales from 31 percent in the fourth quarter.
LG’s financial performance has become closely linked with Apple, which is the world’s second-largest smartphone supplier after Samsung Electronics Co. LG Display also makes TV panels but sluggish demand for TVs has made smartphones and tablets more crucial for its growth.
Apple’s earnings report Wednesday showed that its sales of iPhones, iPads and Mac computers were each 1 million units short of market expectations. The Cupertino, Calif.-based company also gave sales guidance that fell short of expectations.
Many brokerages have lowered LG Display’s sales outlook and share price target recently, citing concerns about demand for Apple’s iPhone. Analysts said an increase in iPad mini sales in lieu of other iPad models that use bigger screens will also reduce LG’s profit.
James Jeong, LG Display’s chief financial officer, said the panel industry, which has been suffering from oversupply and weak global demand for years, is not expected to make a big improvement for another year.
Jeong said LG Display will have almost no increase in its production capacity this year, underlining how the tech sector is still reluctant to increase investment in factories at a time of global economic uncertainty.
LG’s fourth quarter profit fell short of the 352 billion won median forecast by analysts polled by FactSet.
Operating profit totaled 587.3 billion won, compared with a 154.7 billion won loss a year earlier.
TWT Video Picks
The president could pay the full price for ignoring Congress
- David Perdue defeats Jack Kingston in Georgia Republican Senate primary runoff
- IRS seeks help destroying another 3,200 computer hard drives
- D.C. appeals panel deals big blow to Obamacare subsidies
- 'Straight White Guy Festival' supposedly set for Ohio park
- Beretta moving to Tennessee over Maryland gun laws
- Gen. James Amos, Marine Corps commandant, slams Obama's handling of Iraq
- LYONS: Small-arms treaty, big Second Amendment threat
- Jewish woman booted from JetBlue flight over fight with Palestinian
- MAY: Barbarians at Jordan's gate
- Outrage over $190M border security deal for troubled federal contractor
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq