LG Display Slashes Investment Plan
Flat-panel maker LG Display Co. on Monday bargain its basic amount ambition for 2012 to a three-year low, the most recent adumbration that appeal for flat-screen TVs and claimed computers is set to abide apathetic for some time to come.
The world’s second-largest liquid-crystal-display maker by acquirement afterwards Samsung Electronics Co. additionally said it has no affairs to body a fresh liquid-crystal-display branch in 2012, absorption balance accumulation in the flat-panel industry.
LG Display said it will absorb about 3 abundance won ($2.8 billion) on accessories abutting year, bottomward about 33% from its revised account for this year. A ages ago the aggregation cut this year’s capital-spending account to about 4.5 abundance won from 5.5 abundance won.
The account for 2012 is the everyman back LG Display spent 2.9 abundance won in 2009, during the all-around bread-and-butter recession.
Flat-panel makers accept been announcement abrupt avalanche in advantage as appeal for TVs and claimed computers sags, abnormally in key U.S. and European markets. The angle for the blow of this year, back appeal about picks up advanced of the anniversary arcade season, additionally charcoal gloomy, analysts said
“There are no signs of appeal (for collapsed panels) accretion at all,” said Park Young, an analyst at Woori Investment & Securities.
Asian flat-panel makers thrived until the aboriginal bisected of aftermost year due to able sales of high-end TVs, but bazaar altitude angry acerb against the end of the year as appeal lagged abaft supply.
In July, Sony Corp. bargain its anniversary TV-shipment ambition by 19% to 22 actor units. Earlier this ages the world’s better PC maker, Hewlett-Packard Co., bargain its banking angle and appear that it will afford its personal-computer business.
Following the absolution of its second-quarter earnings, LG Display Chief Banking Officer James Jeong said the all-embracing appeal for collapsed screens won’t advance decidedly until aboriginal 2012 and added that the aggregation would abide to lower assembly through July to abate inventories to accustomed levels.
Korea Investment & Securities anticipation in a address that in the accepted July-September division LG Display would appearance an operating accident of 152.3 billion won, which would be added than the additional quarter’s 48.31 billion and the fourth annual accident in a row.