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LG Display Management Discusses Q3 2011 Results - Earnings Call Transcript

Moving to slide six, I would like to go over our performance highlights. Looking at our shipments, it increased by 9% quarter-on-quarter, recording 8.1 million square meters. Blended ASPs fell 5% quarter-on-quarter. With the global economic downturn, the demand uncertainty persisted throughout the channel. This resulted in lower than traditional two digit shipment growth seasonality and deeper panel price fall in third quarter.

Moving onto our product mix on slide seven. In third quarter, the TV segment represents 47% of the revenue, followed by monitor at 19%, notebook at 14%, smartbook at 11%, and mobile and others at 9%. The percentage of revenue for each of the product mix is similar to the last quarter but the smartbook and mobile based on our AH-IPS technology showed the continued increase in portion by one percentage points each.

Moving onto slide eight, and looking at our capacity. Our capacity increased slightly by 3% quarter-on-quarter due to increased working base compared to the previous quarter. Next we turn to our outlook section. In the first quarter, we expect our total shipment to increase by a low-single digit percentage. Demand outlook is still uncertain, however as the panel makers profitability concerns become severer, we expect the price fall to be limited going forward.

Lastly, we turn our attention to the management focus on the next slide. We would like to firstly turn your attention on the issues regarding third quarter results. The posted operating loss stand at KRW492 billion due to the non-recurring items that I mentioned before. The non-recurring items included two parts. First, additional allowance for antitrust reserves as a possibility of product payment has increased. And second, unrealized net borrowing operation loss. With a sharp rise in the exchange rate at the end of the quarter, sectors such as customer architect payments and antitrust allowance based on U.S. dollar were affected and difference for deficit in the income statements. However most of our U.S. dollar debt is long-term debt with three to five year maturity period. And because of that on side, it’s passed over to the utilization gain if one dollar rate would be weaker.

Read the rest of this transcript for free on seekingalpha.com

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