Apple supplier LG Display posts larger loss, but says the worst is over
Apple Inc supplier LG Display Co Ltd said on Thursday is expects profitability to improve in the second half of this year, despite a larger operating loss as people shied away from buying TV sets during the coronavirus pandemic.
“Considering the prolonged COVID-19 pandemic, it is true that the macroeconomic environment is still not favourable. However, we observe that the worst is over,” said Suh Dong-hee, chief financial officer and senior vice president.
The South Korean panel maker posted its sixth straight quarter of operating losses as retail stores were shut around the world during the second quarter to contain the spread of the virus.
Its loss for April-June widened to 517 billion won ($431.96 million) from a loss of 369 billion won in the same period a year earlier.
That compared with analysts’ forecast loss of 449 billion won, according to Refinitiv SmartEstimate.
Revenue fell 1% to 5.3 trillion won, the company said in a regulatory filing.
LG Display said an increase in working from home and online education helped strong sales of IT products such as monitors, tablets and laptops, but it was not enough to offset weak demand for televisions as shoppers stayed home.
Consumers tend to buy big-ticket items such as TVs at brick-and-mortar stores instead of online, analysts said.
“There is going to be meaningful and significant improvement in our profitability,” said Suh on an earnings conference call, noting the company is starting mass production in the latter part of this year at its large-sized organic light-emitting diode (OLED) panel plant in Guangzhou.
