South Korean flat-screen maker LG Display returned to an operating loss in the first quarter, hit by weakening demand for large display panels for TVs and small panels for smartphones.
The Apple supplier posted an operating loss of 469 billion
won ($341 million) for the January-March quarter after a profit in the previous
quarter.
The result compares with a loss of 1.1 trillion won a year
earlier but was better than a loss of 630 billion won forecast by LSEG
SmartEstimate.
LG Display had posted six consecutive quarterly losses
before reporting a profit in the fourth quarter of 2023 because of an increase
in year-end holiday seasonal demand.
LG Display is working to change its business portfolio so
its bottom line is less affected by roller coaster seasonal cycles, company
executives said on Thursday.
“Despite the continued uncertainty and volatility of the
market and external environment, we will increase the proportion of high-end
products and focus our company’s capabilities on improving our cost structure,”
said Sung-hyun Kim, CFO at LG Display.
LG Display has reduced investment, switched its focus to
projects agreed with customers instead of commodified product production, and
cut LCD production that is facing low-cost competition from Chinese rivals,
executives said.
This year’s investment will be around 2 trillion won, down
from 3.6 trillion last year, and the company said it is aiming for a turnaround
in the second half of the year by expanding its output of high-end OLED
products.
LG Display has also put up for sale in Guangzhou, China, its
last production plant for large LCD panels used in TVs.
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