One of the world's biggest producers of LCD display panels has reported a six per cent fall in sales of its LCD panels in terms of value during the second quarter of 2006.

The LCD business of LG.Philips said that sales had fallen to £2.44 billion from first quarter sales of £2.61 billion.

Despite the decrease in terms of 2006, sales were fractionally up on the second quarter of last year by 0.3 per cent.

It blamed the fall on an industry-wide decline in average selling prices across the TV, monitor and notebook segments, as well as sales volume growth failing to reach expectations.

Overcapacity was also said to be an issue in the LCD production market.

"As we announced in June, we are addressing an increase in inventory levels during a period of overcapacity, primarily in the LCD TV segment, by temporising production," said Ron Wirahadiraksa, president and chief financial officer of LG.Philips LCD.

"We believe that the temporisation of production, along with other efforts, will enable us to maintain our competitiveness as a top-tier player in an industry that is starting to take a more rational approach to capacity and has undiminished long-term growth prospects."

It said that it expected demand for LCD panels to be stronger in the third quarter largely due to increased seasonal demand leading into the holiday season.

Platinum and other pgms are used in the production of LCD glass.

Platinum's high melting point, strength and resistance to corrosion allow it to withstand the glass production process.

Ÿ Adfero Ltd