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LG.Philips reports record profit after shortage of screens

LG.Philips LCD Co, the world's second-largest maker of liquid-crystal displays (LCD), reported record quarterly profit after a shortage boosted the prices of screens used in desktop computers and laptops.

Fourth-quarter net income was 760 billion won (US$811 million), compared with a 174.3 billion won loss a year earlier, Seoul-based LG.Philips said yesterday. That beat the 654 billion won median estimate of 17 analysts whom Bloomberg surveyed by phone and e-mail.

LG.Philips posted its highest annual sales as LCD manufacturers widened their lead over plasma displays in the US$93 billion flat-panel market. Analysts at Lehman Brothers Holdings Inc and Citigroup Inc predict the company will post record profit this year as the shortage of LCDs persists.

"2008 is going to be best year for LG.Philips in terms of earnings," said Woo Jun-sik, an analyst at Tong Yang Investment Bank in Seoul, who has a "buy" rating on LG.Philips. "Supply is tight and panel prices are not likely to fall more than previous years."

LG.Philips is the first major LCD maker to disclose earnings for the latest quarter. Suwon, South Korea-based Samsung Electronics Co, the industry's largest producer, reports today. Hsinchu, Taiwan-based AU Optronics reports next month. Sharp Corp, Japan's largest LCD maker, is scheduled to disclose results on Feb. 1.

Revenue, including those of overseas affiliates, climbed to a record 14.35 trillion won last year, the company said.

Annual operating profit and net income were the highest since 2004.
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