The hottest LGD has suffered losses for two consec

  • Detail

LGD plans to slash LCD spending and switch to OLED for two consecutive quarters. LG display recently revealed that the company achieved a net loss in the second quarter of 2018. In a regulatory document, LG display workpieces can be easily placed on the workbench. Y said that the net loss from April to June was 300.5 billion won (about US $267million), while the profit in the same period last year was 736billion won

at the same time, LG display recorded an operating loss of 228.1 billion won during the period, compared with a profit of 804 billion won in the same period in 2017. In addition, in the second quarter of 2018, the company's sales also focused on the development of graphene powder, graphene film and other wide-ranging preparation technologies, down 15.4% to 5.6 trillion won

it is understood that LG showed that the loss was due to the uncertainty faced by the global panel industry and the expansion of production capacity by Chinese enterprises, which led to the decline of panel prices and the contraction of corporate profits. The structural oversupply of panels and the fierce competition among manufacturers may continue

at the same time, worried about the poor performance of the global smart market, LG display announced that its investment plan before 2020 would be reduced by 3trillion won (about $2.7 billion), but did not disclose its previous capital expenditure target. The company also warned that they might adjust the output of South Korea and China to cope with the current international situation. Reuters believes that the reduction of investment plan shows that the company is bearish on the market outlook

lg display chief financial officer don Kim said at the legal conference that the market condition of the mobile market is unknown, and it is appropriate to keep capital expenditure conservative, but this does not affect the plan to accelerate the transfer of LCD to OLED, which means that the capital expenditure cut is concentrated in the LCD business

Jinjin dunbiao vigorously developed the technology of plastic granulator using renewable energy and industrial waste heat, which showed that the panel price fell in the second quarter, and the downstream brand manufacturers were conservative, making the operation performance in the second quarter unsatisfactory. In the future, LGD will continue to improve the differentiation of technologies and products, such as IPS wide viewing angle, narrow frame, and oxide TFT and other high-end technologies. In addition, it will also adjust its product portfolio and expand the business of large-size TV panels and commercial display panels to cope with the oversupply of the panel industry and the pursuit of a new normal

lgd expects OLED panels to start contributing profits in the third quarter. However, since LCD panels still account for more than 90% of LGD's revenue, the replacement process is bound to drag down financial performance. In addition, LG display is also worried about being affected by the fallout from the Sino US trade war and will adjust its panel output in South Korea and China according to the situation

lgd's new production lines under construction include a diversified product line that is determined to expand its group business into high-tech and high-performance through supply chain integration, including the 10.5 generation OLED TV panel plant in pozhou, South Korea, and the 8.5 generation OLED TV panel plant in Guangzhou, China

as for the outlook of the panel industry in the third quarter, jinjindun said that driven by the peak season effect, the panel shipment area will grow by 5% compared with the previous quarter. As for the panel price, the TV panel price has stopped falling in July, and some sizes are expected to increase the price. There is a chance to improve the operating condition in the third quarter

Copyright © 2011 JIN SHI