LG Display records $341 in losses amid sluggish panel demand

LG Display results: South Korean flat-screen manufacturer LG Display experienced a return to operating losses in the first quarter, primarily due to decreased demand for both large display panels for televisions and small panels for smartphones.

The supplier to Apple reported an operating loss of 469 billion won ($341 million) for the January-March quarter, contrasting with a profit in the previous quarter. Despite this, the result was an improvement compared to the same period last year, with the loss being better than the forecast of 630 billion won by LSEG SmartEstimate.

LG Display had faced six consecutive quarterly losses before briefly returning to profit in the fourth quarter of 2023, driven by increased demand during the year-end holiday season. The company is actively working to reshape its business portfolio to mitigate the impact of seasonal fluctuations on its bottom line, according to company executives.

Sung-hyun Kim, CFO at LG Display, stated, "Despite ongoing market uncertainty and volatility, we are committed to increasing the proportion of high-end products and enhancing our cost structure."

To achieve this goal, LG Display has reduced investment, shifted focus towards customer-specific projects, and decreased LCD production facing stiff competition from Chinese rivals. This year's investment is projected to be approximately 2 trillion won, down from 3.6 trillion won last year, with plans for a turnaround in the second half of the year by expanding production of high-end OLED products.

Additionally, LG Display has initiated the sale of its last production plant for large LCD panels used in TVs, located in Guangzhou, China.

(With Reuters inputs)