LG Display Reports Q2 Operating Loss of 488.3 Billion KRW... Turns to Deficit Year-on-Year

[Asia Economy Reporter Yoo Hyun-seok] LG Display announced on the 27th that it recorded sales of 5.6073 trillion KRW and an operating loss of 488.3 billion KRW in the second quarter. Compared to the same period last year, sales decreased by 19%, and operating profit turned to a loss.

In the second quarter, shipments decreased compared to plans due to prolonged COVID-19 lockdowns in China and demand contraction in upstream industries caused by increased economic volatility and uncertainty. The COVID-19 lockdowns in China caused disruptions in finished product production by global IT companies and parts supply by partner companies, leading to a supply chain issue that reduced panel shipments. The contraction of upstream industries led set manufacturers to reduce purchases to minimize inventory, and the continued decline in LCD panel prices also affected performance.

By sales, the product sales ratio was 31% for TV panels, 45% for IT panels (monitors, notebook PCs, tablets, etc.), and 24% for mobile panels and other products.

LG Display plans to focus its capabilities on expanding performance centered on OLED in the second half of the year and compensating for shipment setbacks in the first half caused by supply chain issues.

In the large OLED sector, LG Display will further strengthen its position in the premium market based on the fundamental competitiveness unique to OLED. It will also accelerate market-creating businesses in the life display area, such as transparent OLED. Despite the overall TV market shrinking, OLED TV set sales continue to grow, showing meaningful results.

In the IT display business, despite the overall IT market downturn forecast, LG Display plans to focus on the relatively less volatile premium segment to achieve stable performance. It will continue preparations to recover shipments of high-end LCD panels for IT affected by the COVID-19 lockdown in China, secure the mid-sized OLED market, and strengthen technological leadership.

In the small OLED sector, based on differentiated competitiveness and close cooperation with customers, LG Display plans to expand performance by fully supplying new smartphone models in the second half and responding to strong demand for smartwatches.

In the automotive display business, LG Display currently maintains the world’s number one position with a lineup covering OLED and high-end LCD and differentiated solutions. It plans to further strengthen its market position by expanding its market share (based on sales) to over 30% within the next three years.

The LCD TV sector, which has been continuously downsized, is establishing acceleration plans considering recent market conditions and competition, with a strategy to focus more on the high-end LCD product group for IT.

LG Display CFO Kim Sung-hyun emphasized, “Although the global economy and business environment remain highly uncertain, we plan to respond flexibly to changes and actively control risks through business structure advancement, operational efficiency, inventory management, and strengthening investment efficiency.”

He also stressed, “We are actively pursuing activities to create differentiated results and find future growth engines regardless of market conditions, including strengthening market dominance in large OLED and IT sectors where we have distinctive advantages, actively fostering and expanding order-based businesses, accelerating market-creating businesses, and preparing the foundation for future business preemption and commercialization.”

This content was produced with the assistance of AI translation services.