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Last Updated: Tuesday, 23 January 2007, 08:35 GMT
LG Electronics suffers TV shift
71 inch LG flat screen plasma TV
LG has suffered as consumers have shifted to LCD models
South Korean electronics firms LG Electronics has said profits slumped in the last three months of 2006 as sales and prices of flat-screen TVs fell.

Profits tumbled 85% to 48.2bn won ($51.2m; 25.9m) in the three months to 31 December from a year earlier. Sales in the quarter dipped 11%.

The firm said it suffered as consumers shifted from flat-screen plasma TVs to Liquid Crystal Displays (LCD).

As a result, LG Electronics and others have had to cut prices and production.

Another reason for the drop in earnings at LG Electronics was the performance of its joint venture with European producer Philips.

Screen-maker LG Philips recently reported a net loss for the third quarter in a row, citing intense competition within the industry.


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