SEOUL, South Korea LG.Philips LCD Co. said Thursday (Jan. 12) its fourth-quarter 2005 net income jumped to 328 billion won ($336.8 million), an eight-fold jump over the same period of 2004. The increase was due mainly to strong demand for high-end LCD TV sets and notebook computers.
The world’s No. 2 LCD maker said in a regulatory filing that its sales in the fourth quarter of 2005 increased 8 percent in the third quarter and 53 percent year-on-year.
"During the fourth quarter, LCD TV panel demand was strong as consumers are rapidly recognizing LCD technology as ‘the’ flat TV technology of choice,” said Bon Joon Koo, vice chairman and CEO of LG.Philips LCD. According to marker researcher DisplaySearch, the company was the top maker of large-area TFT-LCD panels in 2005.
For 2005, LG.Philips LCD, a joint venture between South Korea’s LG Electronics and Philips Electronics, posted record high sales.
LG.Philips LCD’s capital expenditures amounted to about 1.4 trillion won in the last quarter of 2005 expanding its production capacity in anticipation of an increase in demand for large-size flat panels.
The company has set aside about 4.2 trillion won for facility investment this year, most of which will be spent for ongoing investment in its seventh-generation TFT-LCD plant and future LCD facilities. The plant beban volume production of the LCD panels earlier this month.
Industry experts expect demand for the panels to increase ahead of international sporting events such as the 2006 Winter Olympics in February and the World Cup soccer finals in June.