Next slide please. This conference call will take an hour. Before we go into the Q&A session, please allow me to highlight our first quarter year 2012 result, performance highlight and outlook.
Originally, our panel shipment for first quarter was expected to be similar to the fourth quarter with a channel inventory restocking demand and new model line-up by set makers, as well as launch of our differentiated products. However, some delay in the schedule of differentiated product and new model development resulted into 4% shipment decrease.
Operating loss continue to while panel price remained stable after slight decline all in the quarter. Cost reduction recorded low single-digit. There is improvement effort to increase competitiveness in first quarter affected the result negatively due to some delay of new model shipments. As most of the issues have been already resolved, we expected these efforts to bear fruit in second quarter leaving to the meaningful improvement in the results.
Looking at second quarter, the demand is expected to be stronger, while the inventory level industry-wide remains low. Order from our customers is expected to be strong with new model line-up in preparation for the sports events.As a portion of differentiated products including FPR 3D, panels for smart devices continues to expand, in an improving market situation, we expected a sound profit in second quarter. However, as the global economic scale remains uncertain, there are some uncertainties in the market which could potentially impact the panel shipments.Looking at the overall Display industry, we feel it is indisputable that LCD has entered maturity and slow growth stage. LG Display has carefully carryout thorough analysis in the strategic direction and investment plans with the following three points under consideration. Number one, the optimization of the interesting LCD business, number two, taking leadership in the largest OLED TV market and number three, finding future growth engine.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV