UPDATE 3-LG Display Q2 net profit surges, faces slowdown ahead

(Adds company comments on slowdown, EBITDA)

By Rhee So-eui and Marie-France Han

SEOUL, July 9 (Reuters) - South Korea's LG Display Co Ltd's (034220.KS: Quote, Profile, Research) quarterly net profit more than trebled thanks to strong demand for flat screens, but future earnings will take a hit as the global economic downturn curbs consumer spending.

"As high oil prices and the global economic slowdown hurt consumer spending, the impact is becoming visible," Chief Financial Officer James Jeong told an investor conference.

LG, which trails Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research) in liquid crystal displays, said prices for its LCD screens are likely to fall by the low-teens in percentage terms next quarter, having slipped 5 percent in the last.

Jeong said the firm's margin on earnings before interest, tax, depreciation and amortisation (EBITDA) could fall to "around 30 percent" in the third quarter, from 38 percent in the second quarter and 39 percent for January-March.

Analysts had expected a downturn to hit the sector at the end of the year, but they say that slowdown could come sooner and last longer.

"LG Display hit the peak this quarter but is expected to struggle until the first quarter of 2009," said Lee Sung-joon, an analyst for SK Securities. "The downturn trend will continue throughout this year."

Despite concerns about slowing demand and falling prices, LG Display said it will boost its spending plans for this year to 4.5 trillion won from 3 trillion as it tries to stay competitive.