LCD display manufacturer LG.Philips LCD
The company, an independently run and traded joint venture between LG Electronics and KoninklijkePhilips
It's awfully hard to turn a profit when your cost of goods sold exceeds revenues, and that's how bad things are at LG.Philips right now. Management is taking the situation seriously and doing what it can to tighten up operations. "We are now at a crucial inflection point," says CFO Ron Wirahadiraksa. "Without additional measures relating to product mix, cost, and productivity, we will not be able to deliver value to our shareholders."
On the plus side, operating cash flow remains positive on the back of large depreciation items, though the company is spending more than that on capital expenses to build the business for future needs. The LCD market is tough enough that Sony
The future will be tougher still, with new technologies expected to enter the market in the coming days. Examples include organic light-emitting diode (OLED) screens powered by technology from Eastman Kodak
- Fellow Fool Rich Smith saw the loss coming.
- Not even the World Cup could pull the earnings above water.
- Universal Display is moving and shaking, though.
Universal Display is a Motley Fool Rule Breakers recommendation. Try a 30-day free trial to see the display technology of the future.
Fool contributor Anders Bylund is a Universal Display shareholder, but he holds no other position in any of the companies discussed here. You can check out Anders' holdings if you like. Foolish disclosure always looks sharp.