The Korea Herald


LG Display likely to swing into red in Q4 on EU fines

By 문예빈

Published : Jan. 18, 2011 - 15:01

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LG Display Co., the world's No. 2 supplier of liquid crystal display (LCD) panels, is likely to report a loss for the fourth quarter, industry sources said Tuesday, as a fine of 215 million euros (US$285 million) by the European Union (EU) takes a toll on its bottom line.

According to the sources, the penalty will be reflected in the company's earnings for the October-December period, which are slated to be released on Friday.

In December, the European Commission ordered LG Display and five other companies to pay a total of 648.9 million euros in fines for fixing LCD panel prices between 2001 and 2006. Samsung Electronics, the sector leader, was part of the price-fixing cartel but was exempted from the penalty for informing the EU.

LG Display is estimated to have reported a 285.9 billion won net loss for the fourth quarter, according to a median estimate of analysts polled by Yonhap News Agency. The median consensus of operating loss stands at 308.1 billion won. The forecast marks LG Display's first loss in seven quarters.

The fine has to be paid within three months of the decision, regardless of the appeal process. After a review, LG Display may lodge an appeal before its February deadline, it said. (Yonhap News)