I was also making that assumption, until someone referred to it as an LCD. It probably is, since an LED array would be much more expensive.
LCD's can be backlit, so take on the color of the lighting (or whitish light plus colored filter). LCD segments can be black when "on"/clear when "off" (as is most common, like on the clock and radio), or can be black when "off" and clear when "on." That would be the case in the display we are discussing. The black or clear is controlled by having two polarizers, one behind and one in front of the LCD. When the segments are "on", the polarized light is rotated 90 degrees by the liquid crystal fluid in the display. If the polarizers are 90 degrees to each other, off segments will be black, and "on" segments will be clear (red with backlight in this case). If the polarizers are aligned, "off" segments will be clear (red ) and "on" segments will be black or nearly so.
I'm suspecting that something gets funky with the backlight. Backlights are often LEDs, which lose brightness with time, especially when used at high brightness levels.
Here are some examples of positive and negative displays:
http://www.crystalfontz.com/products/634/index.html
Or maybe they are really LED's
