LGD logs record sales, sees firm demand

LG Display, the world’s No.2 panel maker, reported record sales in the second quarter, and projected growing demand in the second half despite macroeconomic jitters. 

Its operating profit slid 8 percent from the previous three months, as worries of slowing economic growth have dented panel prices in the traditionally weak period.

Some analysts said concerns about weak demand and large inventory are overrated, predicting stronger-than-expected demand for TVs during the back-to-school and holiday season. 

“Concerns about LG Display seem to be excessive … The latter half may not be as good as previously expected. But the latter half would not be bad,” Lee Hak-moo, an analyst at Mirae Asset Securities, said. 

TV makers have built up inventory because of their bullish outlook, but the high inventory levels would be eased thanks to robust demand in the second half of the year. 

“LG’s profit is expected to further slow in the third quarter, but to recover in the fourth quarter,” Lee said. 

LG Display chief financial offer James Jeong said in a statement that despite macroeconomic uncertainty and inventory burden at some customers, LCDdemand is expected to expand on the back of seasonality and the growth of theLED-backlit TV market. 

He also expected panel prices to stabilize or rebound from around September after gradual declines. 

An LG Display employee works at the company’s eighth-generation LCD production line in Paju, Gyeonggi Province.                                                                                                   LG