1. LPD set a business plan to reach BEP on a net profit level this year, but the goal is not likely to be achieved due to rapid diffusion rate of LCD monitors. Such demand weakness of the CRT market led to deciding additional business rationalization.
2. As a result, LG.Philips Displays (LPD) has decided to reflect an additional non-cash asset impairment of about US$640 mn during Q4 '03 as part of its restructuring effort to regain global competitiveness in the CRT business. These costs are booked as impairment of fixed assets including the CPT plant in Germany and the glass factory in England.
3. Due to LGE's 50% stake in LG Philips Display, LGE plans to reflect additional equity method loss of about 380 bn won, equivalent to 50% of the asset impairment in Q4 '03 results.
* Asset Impairment : According to US GAAP, the recognition of impairment is required when there is evidence that the carrying amount of an asset or a group of assets can no longer be recovered. The differences can be recognized and written off.