The Seoul-based company blamed soft prices and high manufacturing costs for another big loss in its fourth quarter. The company is expected by analysts to report a $194m (180.5bn Won) loss for the recently closed quarter ended December 2006, with sales pegged at $3.1bn.
In the same quarter a year ago LG Philips reported a profit of $350m against sales of approximately $2.2bn.
However some analysts remain hopeful that the seasonal fluctuation typically experienced in its fourth quarter will minimize the amount of the loss.
However the first quarter is also a seasonally slow one for the LCD panel market. Analysts expect prices to drop dramatically — some say by as much as 15% to 20%.
This means that LG Philips is likely to remain unprofitable well into the first half of 2007 at least.
LG Philips, which is jointly owned by LG Electronics Inc and Dutch Philips NV, competes with Korea’s Samsung Electronics Co, Taiwan’s Optronics Corp and Japan’s Sharp Co in the LCD panel market.
The company is currently being investigated for alleged price fixing in the LCD screen market. That investigation promoted the company to replace its CEO at the end of last year.
According to research firm DisplaySearch, the LCD market is believed to be growing 11% and is worth $77.5bn in 2007.
