LG Display profit weakest since early last year

South Korea's LG Display today reported its lowest operating profit in six quarters as panel prices tumbled on weak demand for TVs and computers.

LG, the world's second biggest maker of LCD flat screens, said its July-September operating profit was 182 billion won (£102 million) - its lowest since the first quarter of last year.

Operating profit was down 72% from 662 billion won (£372.5 million) a year ago and 75% down from 726 billion won (£408.6 million) in the preceding quarter.

Analysts believe the company will swing into a loss in this quarter and show a slow profit recovery, as a fragile global economy continues to weigh on consumer demand.

Panel prices, which fell by an average of 30% from April to September, are set to decline further because TV producers have aggressively cut prices to boost demand. This is expected to increase price pressure on most panel makers.

Shares in LG Display, which competes with sector leader Samsung Electronics and Taiwan's Chimei Innolux, have rebounded about 23% from a nine-month low in late August.