SEOUL– LG Display Co. said Wednesday it turned to red in the second quarter on production disruptions caused by China’s COVID-19 lockdowns and sluggish demand for display panels used in electronics products.
The panel maker reported its second-quarter net loss of 382 billion won (US$290.8 million), turning from a profit of 424.1 billion won a year earlier, in a regulatory filing.
It also posted an operating loss of 488.3 billion won for the April-June period, compared with a profit of 701.5 billion won a year ago. Sales fell 14.6 percent to 5.6 trillion won.
The operating loss was 38.8 percent higher than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company said the poor performance in the second quarter is blamed on difficulties in securing parts and delivering set products, especially amid the prolonged lockdowns in China, coupled with weak demand for IT products.
Demand for LCD panels has been waning, as most countries have lifted pandemic restrictions, and people spend less at home and on personal IT devices. Enterprise demand has also been slow, the company said, due to the hostile macroenvironment.
LG Display said it would continue to scale down its loss-making LCD business and focus more on premium organic light-emitting diode panels going forward to turn the business around.
Source: Yonhap News Agency