Falling prices of flat screen displays led to fourth quarter losses for LG Philips LCD Co, dpa quoted the South Korean-Dutch venture as announcing today. Net loss amounted to 174 billion won (185.9 million dollars) in the October-December period, a dramatic shift from the 328 billion won profit a year earlier, the company reported. For 2006 LG Philips reported a deficit of 769 billion won. Sales increased 3.4 per cent to 3 trillion won for the world's second-largest maker of liquid crystal displays behind Samsung Electronics, however, the LG Philips reported an operating loss of 177 billion won, compared with 334 billion won in operating profit a year earlier. Despite the poor results in the fourth quarter the company said it had fared well under tough business conditions, which included the strengthening won against the US dollar. "We are encouraged by our performance this quarter and the results of the enhanced cost reduction initiatives we are implementing," LG Philips CFO Ron Wirahadiraksa said. An industrywide oversupply of flat screens has dropped prices as much as 43 per cent last year alone, Yonhap news agency reported, citing market research Displaybank. Shares of LG Philips rose 1.04 per cent to 29,200 won on the stock exchange Tuesday, however, the earnings report was announced after the stock market closed.
