- LG Display Co.,Ltd LPL reported a revenue decline in the third quarter of fiscal 22 from 6% year-on-year to KRW 6.77 trillion.
- Operating loss was KRW (759) billion. EBITDA fell 76.9% year-on-year to KRW 391 billion.
- The unprecedented decline in demand for devices and panels, coupled with historically low LCD panel prices in the second half of the year, primarily impacted the Company’s well-known mid-range and premium TV panel businesses.
- Tech gadget makers have significantly reduced inventories and consumer sentiment in Europe, a critical sales region for OLED TVs, has deteriorated rapidly amid the Russia-Ukraine war and energy crisis, Reuters reports.
- LPL plans to cut its 2022 investment budget by more than KRW 1 trillion and flexibly operate its OLED production lines to meet demand.
- LPL wants to focus on high-end LCD products and OLED.
- LPL will also expand its differentiated products such as gaming OLED displays and ultra-large OLED panels of 65 inches and above.
- It will move ahead with its plan to end domestic production of LCD TV panels while gradually reducing production in China.
- The prices for LCD panels stabilized in October thanks to production adjustments by panel manufacturers. Still, LG Display is expected to extend losses into the current quarter on weak demand, the report quotes Jeff Kim of KB Securities.
- “Due to the conservative stance that poor management performance could linger, we will accelerate our exit from the LCD TV sector,” Sunghyun Kim, LG Display’s CFO, told analysts.
- LPL generated about 9% of its sales from LCD televisions in the third quarter.
- The report added that LG Display has been in the red since the second quarter, posting its first quarterly operating loss in two years, when a pandemic-driven demand boom for home entertainment equipment ended abruptly amid rising inflation and rising interest rates.
- Price promotion: LPL shares closed down 3.04% at $4.78 on Tuesday.
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