LG Display posts Q2 loss as global prices fallKorea’s LG Display said Wednesday it posted a net loss in the second quarter of 2018 amid falling global prices for panels and intensifying competition.
The net loss came to 300.5 billion won ($267 million) in the April-June period, compared with a profit of 736 billion won a year earlier, LG Display said in a regulatory filing.
The tech company also turned to an operating loss of 228.1 billion won over the cited period, compared with a profit of 804 billion won tallied for the same three-month period in 2017.
Sales plunged 15.4 percent to 5.6 trillion won in the second quarter on-year, it added.
LG Display said the weak earnings were attributable to the falling price of display panels along with conservative approaches by clients in terms of purchases.
The company said TV panels accounted for 42 percent of its sales, followed by mobile panels with 22 percent. Laptop and table PC panels took up 19 percent, trailed by monitor panels at 17 percent.
To improve its profitability, LG Display said it will seek to focus on high-end products, including panels for large-sized TVs.
LG Display also vowed to continue fostering the OLED segment, claiming it will post a net profit in this sector in the third quarter. The company said its investment made on the 10.5-generation production line in Paju, north of Seoul, will be allocated for the OLED business.
Along with the 8.5-generation OLED production line in China, the company vowed to accelerate its penetration into the market for large-sized OLED panels.
LG Display said it will adjust investments and cut roughly 3 trillion won in costs throughout 2020.
Shares of LG Display plunged 4.9 percent on Wednesday from the previous session to close at 20,400 won. The second-quarter report was released before the market opened on the day.