This excerpt taken from the LPL 6-K filed Jan 14, 2008.
LG.PHILIPS LCD REPORTS FOURTH QUARTER 2007 RESULTS
SEOUL, Korea January 14, 2008 LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the worlds leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month period ended December 31, 2007. Amounts in Korean Won (KRW) are translated into US dollars (USD) at the noon buying rate in effect on December 31, 2007, which was KRW 936 per US dollar.
Young Soo Kwon, CEO of LG.Philips LCD, said, We are delighted with our outstanding performance last quarter and throughout 2007, which was driven by strong global demand and stabilized ASP. In addition, we have continuously focused on cost savings and were able to achieve our planned reduction in COGS per square meter in USD of 2% (3% in KRW) during the fourth quarter. On an annualized basis, we exceeded our projected cost reduction in COGS per square meter in USD of 25%, reporting a very strong 31% annual reduction. Further, our commitment to achieve sustainable growth by staying close to our customers, investing in technology leadership and process innovation also contributed to the strong results. These accomplishments are the result of the hard work by our team members across all levels of the organization.
Mr. Kwon continued The fourth quarter was marked by several important strategic initiatives. As part of our ongoing efforts to enhance our customer relationships, during the quarter we opened a module plant in Guangzhou, our second such module site in China. Our strategy of building locally situated module plants allows us to better serve our customers and in this case, specifically in the rapidly emerging Chinese LCD TV market. Additionally, during the quarter we announced a strategic alliance with Taiwans HannStar Display Corp. that links LPLs acquisition of preferred shares with a commitment to purchase high quality LCD panels from HannStar. We believe these two initiatives are good examples of the innovative steps LPL has historically taken to bind and secure our relationships with important customers and suppliers in an increasingly competitive and dynamic marketplace.
We are proud of the significant improvements we have made throughout 2007. Going forward, we aim to deliver more predictable and stable growth for the mid-to-long term, which we expect will translate into greater shareholder value. In the meantime, we will also continue our efforts to construct the most competitive Gen 8 fab in the industry, and make this investment a success by both maximizing efficiency and productivity and devising a roadmap for future growth. Mr. Kwon said.
With the sell down of Philips stake below the 25% threshold, Mr. Ron Wirahadiraksa will step down as Joint Representative Director and CFO at the Companys Annual General Meeting, in late February. On behalf of the entire Board of Directors and management team, I want to thank Ron for his many tireless years of service at LPL. Ron has been a vital member of our Board and management team since the inception of LPL in 1999 and has built a world-class finance department. Moreover, he has made significant contributions to our development, manufacturing and process engineering achievements, and has created a culture of transparency that has been one of the key factors for the companys global success. With his next challenge ahead, we wish him all the best and appreciate his support in working with us during a transition period. James Jeong, formerly Executive Vice President and CFO of LG Electronics is planned to serve as our next CFO and will begin his duties after the Annual General Meeting this year. Mr. Kwon concluded.
This excerpt taken from the LPL 6-K filed Oct 9, 2007.
LG.PHILIPS LCD REPORTS THIRD QUARTER 2007 RESULTS
SEOUL, Korea - October 9, 2007 - LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the worlds leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month period ended September 30, 2007. Amounts in Korean Won (KRW) are translated into US dollars (USD) at the noon buying rate in effect on September 28, 2007, which was KRW 914 per US dollar.
Young Soo Kwon, CEO of LG.Philips LCD, said, We are pleased with our financial performance this quarter, underscored by better than expected profit levels. These strong results reflect our focus on value based management including our continued diligence on reducing costs, maintaining a disciplined CAPEX strategy, developing marketing initiatives focused on our customer base, and managing appropriate inventory levels given both the current and projected market demand. Additionally, better than anticipated cost savings this quarter of 9 percent in terms of USD came as a result of our product development effort and effectively managing the supply chain. We are well on our way to achieving this years guided cost reduction of approximately 30 percent.
Mr. Kwon continued, Today, the Board of Directors approved investment in a Gen 8 facility with additional CAPEX of around KRW 2.5 trillion, targeting ramp-up in the first half of 2009. We believe this timing is in line with expected market demand of large-sized LCD TVs.
In conclusion, our current strategic decisions produced constructive results in the third quarter and attest that we are progressing in the right direction and well positioned to retain our role as a disciplined leader in this dynamic industry.
This excerpt taken from the LPL 6-K filed Jul 10, 2007.
LG.PHILIPS LCD REPORTS SECOND QUARTER 2007 RESULTS
SEOUL, Korea July 10, 2007 LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the worlds leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month period ended June 30, 2007. Amounts in Korean Won (KRW) are translated into US dollars (USD) at the noon buying rate in effect on June 29, 2007, which was KRW 923 per US dollar.
Young Soo Kwon, CEO of LG.Philips LCD, said, Our second quarters performance was better than expected, which underscored a faster than anticipated turnaround. This was driven in large part by the successful implementation of our strategies aimed at reducing costs, sustaining a disciplined Capex strategy, maintaining healthy inventory levels and developing plans for capacity expansion, especially at P7. Overall, we benefited from the markets more rational production and pricing levels and believe LG.Philips LCD is well positioned for continued performance improvement in the second half of 2007.
Mr. Kwon continued, In the second quarter, enhanced customer collaboration and overall strong market demand were the primary drivers of improved shipment levels in the monitor and notebook segments. We were pleased to see that shipments for the TV segment also increased in the second quarter, with ASP declines stabilizing to levels better than those projected in previous guidance. Innovative cost reduction initiatives resulted in the sequential decrease in cost of goods sold per square meter of 12% and we are well on our way to achieving around 30% in cost reductions for 2007.
Our objective to balance the goal of maximizing output capacity through improving input capacity and production excellence was critical in the decision to cancel the investment in Gen 5.5 equipment. Instead, we are focusing on ways to maximize capacity at existing production lines and are studying investment in Gen 8 equipment, targeting ramp up in the first half of 2009 in the already
constructed building. We believe this strategy creates stronger opportunities to further enhance competitiveness, eventually returning us to performance levels that will produce greater shareholder value in the mid-to-long term. The second quarters performance demonstrates that we are moving in the right direction, Mr. Kwon concluded.
This excerpt taken from the LPL 6-K filed Apr 10, 2007.
LG.PHILIPS LCD REPORTS FIRST QUARTER 2007 RESULTS
SEOUL, Korea April 10, 2007 LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the worlds leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month period ended March 31, 2007. Amounts in Korean Won (KRW) are translated into US dollars (USD) at the noon buying rate in effect on March 30, 2007, which was KRW 941 per US dollar.
Young Soo Kwon, CEO of LG.Philips LCD, said, During the first quarter, our sales performance was encouraging, particularly in the TV and notebook PC segments, as the supply/demand environment improved and pricing began to stabilize. While we are pleased with these results, we continue to direct our resources on a number of key areas that we believe will bring about long-term shareholder value creation.
First, our efforts to better collaborate with our customers continue to pay off, as exemplified by major customers ranking us among their top suppliers. Second, our continued focus on intensive cost reduction resulted in a sequential 9% decrease in cost of goods sold on a square meter basis. Third, our finished goods inventory levels came in at approximately two weeks at the end of the quarter. Lastly, our approach to CAPEX has made certain that investments specifically correspond with market demand.
Mr. Kwon continued, While the first quarter presented many of the same industry-wide challenges that have been affecting the Company for the past several quarters, there are a few recent trends that are now positively impacting the industry: consumers are demanding LCDs over plasma display panels due to superior technology at comparative pricing in the 40 TV segment; and the industry is taking a more conservative and realistic approach to production and capital spending. We expect that going forward these dynamics will bring further strength to the market and are indicative of an industry turnaround in the very near future.