By Staff writer
Moving on down
LG Phillips LCD
The world’s second largest LCD manufacturer suffered a massive $335m loss in the third quarter, despite reporting a 20% increase in sales revenue. The company attributed the record loss to declining LCD TV prices and a glut of inventory following dismal sales during the FIFA World Cup. LG Philips hopes to recover from its increasingly precarious position by slashing capital expenditure to the tune of US$2 billion in 2007, down 70% on 2006 levels.
Given its calamitous performance in the LCD TV sector, October proved a month to forget for the Dutch electronics group, with its CE division reporting a 5% drop in sales quarteron– quarter, while operating profit fell from US$138 million to US$67 million. On a brighter note, the company managed to offload its struggling mobile handset business to China Electronics Corporation (CEC). Under the deal, CEC will market and sell mobile phones under the Philips brand for the next five years.