LG Display losses surge in the wake of COVID pandemic but OLED capacity set to double

posted on Thursday, 23rd July 2020 by Steve May

Corporate  4K  OLED  Trade 

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LG Display has reported a net loss in the second quarter of 2020 of KRW 504 billion ($3billion and change), compared with the net loss of KRW 199 billion in the first quarter of 2020, and the net loss of KRW 550 billion in the second quarter of 2019.

Operating loss in the second quarter of 2020 amounted to KRW 517 billion. This compares with the operating loss of KRW 362 billion in the first quarter of 2020.

There was some daylight in its second quarter results though. Revenues in the second quarter of 2020 increased by 12 per cent to KRW 5,307 billion from KRW 4,724 billion in the first quarter of 2020, thanks to a surge in IT panel shipments driven by working-from-home and online education amid the COVID-19 pandemic.

Panels for tablets, notebook PCs, and desktop monitors, accounted for 52 per cent of the revenue in the second quarter of 2020, passing the 50 per cent mark for the first time. Those for mobile devices accounted for 25 per cent and TVs for 23 per cent.

LG Display says it expects business performance to improve from the latter half of this year with the mass-production large-size OLED panels beginning at its plant in Guangzhou, China, as well as by increasing smartphone P-OLED panel shipments.

When it comes to its OLED TV business, LG Display says it will expand production capacity from the current 70,000 sheets to 130,000 sheets per month, thanks as a result of having two production bases in Paju, Korea and Guangzhou.

In addition, LG Display will focus on securing supply stability for its P-OLED business during the peak season in the latter half of the year, while further strengthening its LCD business through IT panels with differentiated competitiveness by actively seizing growing opportunities that the post-COVID-19 era will bring about.

“Considering the prolonged COVID-19 pandemic, it is true that the macroeconomic environment is still not favorable. However, we observe that the worst is over,” says Dong-hee Suh, CFO and Senior Vice President of LG Display. "From the latter half of this year, we will be able to gradually generate tangible results from our three key strategic tasks that we’ve been pursuing such as ‘expanding the large-size OLED display business,’ ‘achieving P-OLED turnaround,’ and ‘accelerating structural innovation of the LCD business’ by focusing on high value-added products including IT panels.”

Steve May

Inside CI Editor Steve May is a freelance technology specialist who also writes for T3TechRadarHome Cinema Choice, Trusted Reviews and The Luxe Review.

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