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Last Updated: Tuesday, 11 October 2005, 11:16 GMT 12:16 UK
Flat screen TV demand 'growing'
Sharp LCD television
After a slump, demand and pricing power seems to be picking up
Demand for flat screen televisions and display panels is growing worldwide, according to LG Philips and Sharp.

South Korea's LG Philips said third quarter profit jumped from the previous three month period on more TV shipments and an improvement in pricing power.

Japan's Sharp said it was struggling to meet demand for liquid crystal displays (LCDs) and that there was a shortage of the screens used in large, thin TVs.

The main use for LCDs is as monitors on laptop computers and display panels.

'Getting stronger'

According to LG Philips, the market is picking up again after falling into a trough and it reported a net profit of 227bn won ($218m; 124m) for the three months to 30 September.

While that is five times higher than the second quarter profit of 41bn won, it is still down on the 291bn won profit reported in the same period a year earlier, and analysts warned that earnings were still a long way from hitting a peak.

Sales during the quarter rose 46% to 2.74 trillion won from 1.88 trillion won a year earlier.

Sharp, which competes against Sony in its domestic market, is bullish about the demand for LCDs used in large TVs - those that measure more than 32 inches.

The company reckons that supplies are likely to miss demand by between 15-30% this year.

"Last year around this time analysts were forecasting excess production capacity," said Toshishige Hamano, a corporate executive director at Sharp. "But the fact is there isn't enough."

"Calls from our customers to deliver our panels quickly are getting stronger," Mr Hamano said.

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