LG Display, Apple’s display panel supplier, reported fourth-quarter results Friday, posting its fourth consecutive quarterly operating loss. The company is facing a continuing drop in LCD panel prices and restructuring costs. LG Display’s loss for the quarter was smaller than expected. Over the past year, the company has struggled with management restructuring and layoffs. The South Korean company is investing in the next generation of OLED panels.
Suh Dong-hee, lg Display’s senior vice president, said the company expects profits to improve as production at china’s OLED plant capacity climbing.
LG Display lost 422 billion won ($361.6 million) in the October-December quarter, compared with a profit of 279 billion won a year earlier. On average, 22 analysts expect LG Display to lose 578 billion won in the quarter, according to Refinitiv SmartEstimate. LG Display’s revenue fell 8 percent to 6.4 trillion won in the fourth quarter.
“As production increases at the OLED plant in China, we will strive to drive a significant increase in revenue from large-size OLED panels,” said Suh Dong-hee. ”
LG Display launched a voluntary layoff program last year. Earlier this month, the company also said it would stop producing LCD TV panels in South Korea by the end of the year. Analysts said the associated one-off restructuring costs dragged down the quarter.
LG Display reported a loss of 1.4 trillion won in 2019, its worst performance in the past eight years.
As Chinese companies have joined in, the LCD panel market is highly competitive, and prices have been falling for years. LG Display and rival Samsung Display are cutting supplies because of oversupply. Analysts said the move would help ease price pressures in the first half of 2020.
Samsung Electronics said Thursday that it expects Samsung Display’s business to remain weak.
LG Display said last year it would invest about $2.6 billion in The OLED panel production line in South Korea.