Outlook is good for China LCD market

Liquid Crystal Display (LCD) device manufacturers expressed optimism based on robust quarterly profit forecasts driven by Chinese demand for LCD products, Reuters reported. After a year of relatively flat spending, Chinese consumers are shopping again for computer screens, flat-screen TVs and other gadgets. "The sector’s recovery is ongoing and the positive business trend will continue until the third quarter," said Choi Seong-lak, an analyst at SK Securities. Korean LG Display (LPL.NYSE, 034220.SEO), the world’s second-largest LCD manufacturer which supplies Apple’s (AAPL.NASDAQ) new iPad device, projected shipments will increase by 10% in the second quarter. It reported a US$712 million operating profit in January-March, beating expectations after a loss-making 2009. Taiwan-based AU Optronics (AUO.NYSE, 2409.TPE) also returned to profit in the first quarter. However, growth might be checked by a looming shortage of LCD glass, but increased investments by manufacturers are expected to alleviate the situation by later in the year.