LG Display returns to quarterly loss on drop in off-season demand

By Joyce Lee

SEOUL (Reuters) -South Korean flat-screen maker LG Display returned to an operating loss in the first quarter, hit by weakening demand for large display panels for TVs and small panels for smartphones.

The Apple supplier posted an operating loss of 469 billion won ($341 million) for the January-March quarter after a profit in the previous quarter.

The result compares with a loss of 1.1 trillion won a year earlier but was better than a loss of 630 billion won forecast by LSEG SmartEstimate.

LG Display had posted six consecutive quarterly losses before reporting a profit in the fourth quarter of 2023 because of an increase in year-end holiday seasonal demand.

LG Display is working to change its business portfolio so its bottom line is less affected by roller coaster seasonal cycles, company executives said on Thursday.

"Despite the continued uncertainty and volatility of the market and external environment, we will increase the proportion of high-end products and focus our company's capabilities on improving our cost structure," said Sung-hyun Kim, CFO at LG Display.

LG Display has reduced investment, switched its focus to projects agreed with customers instead of commodified product production, and cut LCD production that is facing low-cost competition from Chinese rivals, executives said.

This year's investment will be around 2 trillion won, down from 3.6 trillion last year, and the company said it is aiming for a turnaround in the second half of the year by expanding its output of high-end OLED products.

LG Display has also put up for sale in Guangzhou, China, its last production plant for large LCD panels used in TVs.

($1 = 1,376.6200 won)

(Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue)