LG Display, a South Korean display panel maker, reported a record operating loss in the December quarter on Friday, as global demand for smartphones, computers, and televisions remains weak amid an uncertain economic outlook.
LG reported an operating loss of 876 billion won ($711.13 million) for the October-December quarter, compared to a profit of 476 billion won in the same period last year. It fell short of the average forecast of 797 billion won loss from 10 analysts polled by Refinitiv SmartEstimate, which is weighted toward more consistently accurate analysts.
According to LG Display, the loss was caused by a continuous decline in mid-sized panel prices as well as a “high-intensity” effort to control inventory and reduce factory operations.
Analysts predict that the display maker will continue to lose money in the current quarter as consumers cut back on spending and businesses cut jobs to weather the storm. LG Display announced last month that it will cease production of liquid-crystal display (LCD) TV panels in South Korea in order to weather the downturn.
A small number of domestic office workers and some production personnel have been offered voluntary leave of absence by the display manufacturer. Analysts expect the display manufacturer to continue losing money in the current quarter as consumers cut back on spending and businesses cut jobs to weather the storm.
To weather the downturn, LG Display announced last month that it will cease production of liquid-crystal display (LCD) TV panels in South Korea. The display manufacturer has offered voluntary leave of absence to a small number of domestic office workers and some production personnel.
Also Read:
