My finance view

Flat screen maker LG Display Co Ltd (034220.KS: Quote, Profile, Research) and two smaller Taiwanese rivals are expected to post strong first-quarter earnings as the booming market for thinner, sleeker TVs boosted panel demand amid tight supplies.

Makers of liquid crystal display (LCD) panels saw solid demand and stable pricing in the usually-slow first quarter, helped by drastic investment cuts after a painful panel glut in 2006. The investment cutback will continue to limit capacity throughout 2008, analysts said.

Earnings are set to increase further in the second and third quarters with sales of LCD TVs to replace bulky tubes picking up pace ahead of Beijing Olympics this summer.

“The LCD industry in 2008 should enjoy the sort of boom that has not been observed since 2004,” said John Soh, an analyst Goodmorning Shinhan Securities. “LCD TVs and notebook computers are becoming widespread globally, leading the trend. LG Display should see its best results ever this year.”

Analysts expect the market to tilt toward oversupply again at the end of the year, but many say the scale of excess production would be small, with TV demand growing fast.

South Korea’s LG Display (LPL.N: Quote, Profile, Research), formerly LG.Philips LCD, is forecast to report on Thursday a 715.5 billion won ($735 million) net profit in the first quarter, according to 8 analysts polled by Reuters.

The profit marks a rebound from a 169 billion won net loss from the year-earlier period and compares with the record 760 billion won earned in the October-December quarter.

Besides strong demand, the weaker won <KRW=> currency and improved production yields also boosted earnings at LG Display, the world’s No guaranteed cash advance loan. 2 maker of large-sized LCD screens. 

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