SEOUL, Oct 14 (Reuters) - Samsung Electronics Co Ltd (005930.KS), the world's largest maker of liquid crystal display (LCD) panels, said on Tuesday it was "adjusting" production amid sluggish demand for TV and monitor screens.

The outlook for the LCD sector is bleak as the global downturn spreads, curtailing consumer appetite for pricey flat TVs and new personal computers.

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"As demand is weakening, we are responding in a flexible manner through output control," said James Chung, a company spokesman.

He did not elaborate but said the company had not made any meaningful output cuts, downplaying a local media report that said Samsung had cut production by 5 percent since August.

Samsung's comment comes as smaller LCD makers, including local rival LG Display Co Ltd (034220.KS) and Taiwan's AU Optronics Corp (2409.TW) (AUO.N), have slashed output in recent months to fight falling screen prices and control supply.

But those efforts so far failed to reverse the market trend. For No. 2 player LG Display, which is set to report earnings later Tuesday, analysts estimate average LCD prices likely fell nearly 20 percent in the July-September quarter.

As of 0133 GMT, Samsung shares were up 4.39 percent in a market-wide rally, compared to the KOSPI's 5.24 percent gain. LG Display was up 5.75 percent. (Reporting by Rhee So-eui; Editing by Jonathan Hopfner)

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