What you need to know
- Apple display supplier LG has reported its fifth consecutive quarterly loss.
- In Q1, it lost $294 million and revenue fell by 20%.
- LG plans to halt domestic production of LCD TVs by the end of 2020, in a bid to stop the bleeding.
Apple display supplier LG has recorded its fifth consecutive quarterly loss.
As reported by Reuters:
South Korea's LG Display Co Ltd reported its fifth straight quarter of operating losses on Thursday, hit hard as demand for smartphones and televisions slumped due to the coronavirus pandemic.
The operating loss for the first quarter ended March widened to 362 billion won ($294.70 million), from a loss of 132 billion won a year earlier, and compares with a Refinitiv SmartEstimate drawn from 19 analysts for a 390 billion won loss.
The Apple Inc supplier said revenue fell 20% to 4.7 trillion won.
In a statement, LG said, "we expect volatility in demand to increase down the road, as industry sectors are impacted by the COVID-19 outbreak." It says that it expects this will "inevitably linger" however LG remains hopeful that stay-at-home orders may drive demand for IT products.
Nasdaq further reports that analysts have pointed to a glut in the supply of LCD panels as rivals return to production. The report notes that LG, like Samsung, plans to end the production of LCD panels by the end of the year.
Whilst this is the fifth quarterly loss in a row for LG, the report points to a slump in demand for smartphones and televisions driven by the coronavirus pandemic as the prime factor behind the most recent quarter's downturn.