Seoul, July 23 (IANS) South Korean LG Display Company’s net losses widened in the second quarter due to low LCD (liquid-crystal display) panel prices and weak global demand. It logged 550 billion won ($467 million) net losses in the period, compared with a loss of 301 billion won a year earlier, the firm said in a regulatory filing on Tuesday.
The company reported operating losses of 368.7 billion won, while sales declined 6 per cent on-year to 5.35 trillion won in the second quarter, Yonhap news agency reported.
The average price of the firm’s 50-inch LCDs for TVs dropped to 7.5 per cent on-year in the second quarter, according to WitsView, a division of TrendForce.
The quarterly loss is also attributed to its investment in organic light-emitting diode (OLED) panels to shift from the traditional LCD panels that have been plagued by falling demand and supply glut, partly from Chinese producers.
Earlier in the day, LG Display said it would invest three trillion won in an OLED facility in South Korea to expand production capacity.
The company’s OLED factory in China will start functioning next month and roll out 60,000 OLED sheets per month. It would increase its monthly OLED sheet output capacity to 130,000 units this year when combined with output at its factory in Paju, north of Seoul.
“Once the Chinese factory begins mass production in the third quarter, it will more than double the firm’s OLED panel capacity,” said Seo Dong-hee, chief financial officer. “We will also release plastic OLED panels for autos in the latter half of the year to strengthen our position in the auto display market,” he said.
Shares of LG Display advanced 1.19 per cent to 17,050 won on the Seoul bourse. The earnings report was released after the market closure.