LG Electronics expects display unit to make profit

SEOUL: South Korea's LG Electronics Inc expects its display division to make a profit in the first half of this year on improved performance from its money-losing plasma display panel business, the company's top executive said on Friday.

"Profitability at the PDP business is improving very rapidly," Chief Executive Yong Nam said during the company's annual general meeting. "I expect our display division to make a turnaround in the first half."

LG's display division, which makes plasma display panels and flat-screen TVs, posted a loss for the fifth straight quarter in the three months ended Dec. 31 as its business kept losing customers, who preferred rival liquid crystal display television sets.

Its display division reported a consolidated operating loss of 10.9 billion Korean won (US$11.3 million; euro7.3 million) in the fourth quarter.

The chief executive Friday reiterated that the company is looking for ways to grow "not just organically but through mergers and acquisitions if needed."

He didn't elaborate, but he also said LG has no interest in re-entering the semiconductor business by acquiring a stake in Hynix Semiconductor Inc, which is likely to be up for sale this year.