LG Display Posts Operating Loss in Q1: Weakening Demand Takes Hold
SEOUL, South Korea – LG Display, a prominent manufacturer of flat-screen panels, has reported an operating loss of 469 billion won (approximately $341 million) for the January-March quarter of 2023. This result marks a significant reversal from the profit reported in the previous quarter and highlights the ongoing impact of weakening demand on the industry.
The company’s loss was primarily driven by decreasing demand for both large display panels used in televisions and smaller panels utilized in smartphones. Despite the challenging market conditions, LG Display’s financial performance surpassed analysts’ expectations, which had forecast a loss of 630 billion won. This is an improvement compared to the 1.1 trillion won loss incurred in the first quarter of 2022.
Prior to reporting a profit in the fourth quarter of 2023, LG Display had experienced six consecutive quarterly losses. The previous profit was attributed to a surge in seasonal demand during the year-end holiday period. However, the first quarter of 2023 has witnessed a decline in demand, leading to the operating loss.
The weakened demand for display panels is a reflection of the broader economic slowdown, particularly in the electronics sector. With consumers spending less on discretionary items, manufacturers of electronic devices are reducing their orders for display panels, which has a direct impact on companies like LG Display.
Despite the challenges, LG Display remains a major player in the global display industry, with a significant market share in both large and small display panels. The company will continue to monitor market conditions and adjust its production plans accordingly to navigate the current environment.
