LG Display, a leading panel maker for makers or smartphone, television and tablet PCs, has revealed its turnaround plans in the coming quarters.
LG Display has reported 32 percent drop in revenues to KRW 4,411 billion in the first quarter of 2023 from KRW 6,471 billion in the first quarter of 2022.
LG Display has posted operating loss of KRW 1,098 billion ($823 million) during the first quarter of 2023. This compares with the operating loss of KRW 876 billion in the fourth quarter of 2022 and an operating profit of KRW 38 billion in the first quarter of 2022.
LG Display has posted net loss of KRW 1,153 billion in the first quarter of 2023, compared with the net loss of KRW 2,094 billion in the fourth quarter of 2022 and with the net income of KRW 54 billion in the first quarter of 2022.
LG Display said it saw a decrease in panel shipments due to low seasonality and shrinking industry demand mainly for TV and IT products, as set makers continued to aggressively adjust their inventory levels. LG Display’s decision to downsize its LCD TV panel business also affected the revenues.
LG Display said panels for TVs accounted for 19 percent of revenues in the first quarter, while panels for IT devices including monitors, laptops, and tablet PCs accounted for 38 percent, panels for mobile and other devices accounted for 32 percent, and those for automobiles accounted for 11 percent.
South Korean display panel maker aims to grow the share of its market-to-order business (longer-term order-based production) to over 70 percent within the next two to three years from 40 percent of the revenue at present.
LG Display aims at increasing orders and revenues from the automotive display sector.
LG Display aims at expanding the shipment of high value-added panels for mobile devices scheduled for additional mass production this year.
LG Display, one of the key suppliers to Apple devices, said it aims to prepare for a mass production and supply system for its mid-sized OLED business including tablet PCs in 2024 based on its technological leadership.
LG Display will focus more on high value-added areas for its supply and demand-based business which is vulnerable to market volatility.
The company will continue to strengthen its position in the premium TV market with its large-sized OLED by expanding its product lineup underpinned by stronger fundamental competitive edge characterized by brightness and energy efficiency and by innovating cost structure.
LG Display will accelerate its market-creating business with high growth potential such as Transparent and Gaming OLED panels.
“Panel demand is predicted to fall short of actual set sales as set makers anticipate a prolonged period of sluggish demand. We plan to achieve a turnaround during the second half of the year, as the industry recovers its inventory level and soundness,” said Sung-hyun Kim, CFO and Senior Vice President at LG Display.