FILE PHOTO: A woman looks at LG Electronics’ organic light-emitting diode (OLED) TV sets, which are made with LG Display flat screens, at its store in Seoul, South Korea, April 26, 2016. REUTERS/Kim Hong-Ji/File Photo
July 25, 2018
SEOUL (Reuters) – South Korea’s LG Display Co Ltd <034220.KS> said on Wednesday its losses mounted in the second quarter due to falling panel prices and weaker demand from television and handset makers.
The Apple Inc <AAPL.O> supplier posted an operating loss of 228 billion won ($202.1 million), compared with an average forecast of a 247 billion won loss derived from a Thomson Reuters survey of 11 analysts.
Revenue for the April-June quarter fell 15 percent from a year earlier to 5.6 trillion won.
It was LG Display’s second consecutive quarterly loss amid an uncertain time for the global panel industry, with Chinese manufacturers ramping up capacity and a glut of LCD output crimping prices and profit margins.
A structural oversupply in panels and fierce competition among display makers were expected to continue, LG said in a statement.
LG is focused on investing in next-generation organic light-emitting diode (OLED) technology, with strong positions in large OLED TV screens.
China recently approved an LG joint venture to run a new OLED factory there, as the company tries to expand its OLED business towards Chinese TV makers.
While the OLED panel business has yet to make a profit for LG, some analysts say it should be earnings-positive from this year.
The LCD business, which analysts estimate makes up more than 90 percent of LG’s sales, is struggling with falling prices as fast-growing Chinese panel makers ramp up their capacity.
Prices of 50-inch LCD panels slid 38 percent in May versus the same month last year, according to South Korean government data.
(Reporting by Ju-min Park and Heekyong Yang; Editing by Stephen Coates)
