LGD Expects Financial Turnaround in 2nd Half
August 20, 2018
LG Display posted net losses of 98.3 billion won ($87 million) and 228.1 billion won in the first and second quarters, respectively. ButLG Display is expected to turn around in the second half of this year on the back of growing global demand for its organic light emitting diodes (OLED) panels, Euro monitor said last week.In the first six months of 2018, LG Group's display business unit posted an operating loss amid falling global prices for large LCDs and intensifying competition.But the company is expected to become profitable in the third quarter and beyond as its OLED business segment lifts up overall performance.
According to Euro monitor International, global demand for OLED TVs is expected to increase from 2.54 million this year to 3.91 million next year, 6.56 million in 2020, 9.95 million in 2021, and 20 million in 2023.LG Display, the world's sole large-sized OLED panel maker, mass-produces the panels at a plant in Paju, Gyeonggi Province, and plans to begin production at a Guangzhou plant in China next year. The firm aims to produce 4 million panels next year, 7 million in 2020 and 10 million in 2021.
Seoul-based financial data provider FnGuide said the firm is expected to post 59.3 billion won and 825.2 billion won in operating profit next year and in 2020, respectively. Such expectation comes as an increasing number of global TV makers, (now 16) are competitively releasing OLED TVs after LG Electronics first released the product in 2013 too much success. Companies producing OLED TVs include LG Electronics, Sony, Skyworth, Panasonic, Philips, B & O and Toshiba.
LG Electronics took a 74.9 percent share in the premium TV market last year, according to Euro monitor International. Being aware of the market outlook, an LG Display official said, "We will accelerate efforts to change our business structure to OLEDs and solidify our position as a leader of the global display market." LG also expected to start production at its 2ndGen 6 fab for flexible OLEDs in the 4thquarter.