LG Display’s losses widen on pandemic and trendsLG Display, which is a supplier of screens to Apple, continues to lose money as global supply chain disruptions caused by the pandemic added to existing problems, such as lower demand for liquid crystal displays (LCD).
LG Display reported a net loss of 198.9 billion won ($161.7 million) during the January-March period, widening from a net loss of 63 billion won a year earlier, the company said in a regulatory filing.
It posted an operating loss of 361.9 billion won during the cited period, compared with a loss of 132 billion won a year earlier.
Sales fell 19.6 percent on-year to 4.72 trillion won.
The company blamed the reduction of LCD panel production for losses as well as disruptions caused by the Covid-19 pandemic.
LG Display has been expanding its investments into organic light-emitting diode (OLED) panels in order to shift from traditional LCD panels, which have been plagued by falling demand and global supply glut in recent years.
The company initially planned to begin mass production of OLED display panels at its plant in Guangzhou, China, in the first quarter of the year, but the schedule has been disrupted by the pandemic.
The display maker said the OLED market was weak in recent months due to sluggish demand and seasonal trends.
“Risks derived from the Covid-19 outbreak have expanded to every industry, heralding increased volatility down the road,” CEO Seo Dong-hee said.
“Yet, we expect demand for IT products to increase due to more online activities and people working from home.”
Shares of LG Display closed at 10,900 won in Seoul on Thursday, up 0.46 percent from the previous session. Earnings were announced after the market closed.
BY PARK EUN-JEE, YONHAP [firstname.lastname@example.org]
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