SEOUL (XFN-ASIA) - Samsung SDI Co said it posted a net loss in the fourth quarter, reversing year earlier profit, as its PDP business suffered sharp price declines due to intensified competition from LCDs and as the won's strength undercut the value of the firm's exports.
The company, the world's third largest PDP maker, posted a net loss of 32.3 bln won for the three months to December, against year-earlier profit of 82.
2 bln.
'This is the first quarterly loss since the year of 2000,' a company spokesman said.
One-time costs of 51.
8 bln won arising from an upgrade of the firm's cathode-ray tube (CRT) production lines also weighed on the bottom line, he added.
Fourth-quarter operating profit meanwhile tumbled 83.4 pct year-on-year to 23.
6 bln won and sales fell 28.7 pct to 1.58 trln won.
The company managed to remain in the black at the operating level as weakness in the PDP business was offset by record sales of rechargeable batteries.
PDP prices fell more than 10 pct in the fourth quarter from the third, the spokesman said.
'Despite the plunge in PDP prices, the overall performance was not that bad,' he noted
The company's major local rival LG Electronics announced an operating loss of 43.
4 bln won for the fourth quarter.
For 2007, Samsung SDI said it is allocating 710 bln won for capital expenditure, below last year's 830 bln.
Despite this reduction, investment in the PDP business will increase to 430 bln won from 210 bln last year, with the firm planning to expand the P4 line at its domestic plant and the module line in Hungary.
The company also plans to expand its battery production lines by spending 80 bln won this year.
The company said the PDP business is likely to remain under pressure in the first half of this year, due to intense competition and seasonal weakness.
The second half, however, will see tighter supply in the display sector, enabling 'stable profitability,' the spokesman said.
The company is seeking to become the global leader in the fast-growing battery segment, and aims to sell 390 mln batteries this year, up 42 pct year-on-year.
It also said it is moving to improve sales and profitability in its other businesses, including mobile display and CRT, by providing more premium products.
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