LG.Philips LCD 4th-Qtr Profit Jumps, Beats Estimates 

LG.Philips LCD Co., the worlds second-largest maker of liquid-crystal displays, reported fourth- quarter profit jumped ninefold, beating analysts estimates, on demand for flat-panel televisions.

Net income in the fourth quarter rose to 328 billion won ($337 million), compared with 35 billion won a year earlier, while sales gained 53 percent to 3 trillion won, the Seoul-based company said in a statement today. Profit beat the 252 billion won median estimate of nine analysts surveyed by Bloomberg.

Chief Marketing Officer Bock Kwon said there will be a shortage of LCDs for televisions this quarter, while oversupply of screens for computers will worsen. LG.Philips and larger rival Samsung Electronics Co. are benefiting as lower prices for flat- screen TVs and sporting events including the soccer World Cup spur demand in the $42 billion LCD industry.

``There are expectations that these kinds of events will lead to increased demand for new televisions, said Kim Hyun Tae, who helps manage about $500 million at Landmark Investment Management Co. in Seoul. ``If demand is sustained, itll be a positive turnaround for LG.Philips this year.

Operating profit surged to 334 billion won from 2 billion won a year earlier, the company said. The median estimate was 319 billion won, according to the Bloomberg survey.

Average LCD prices during the quarter fell 8.3 percent to $2,112 per square meter from a year earlier, the company said. Prices at the end of March will probably fall by about 5 percent from the end of last year, LG.Philips said.

Shipments rose 74 percent from a year earlier. TVs accounted for 34 percent of sales compared with 15 percent in the fourth quarter of 2004.