LG Display announced during a conference call on July 28 that it will continue its LCD business. Since Jung Ho-young took over as president in 2019, LG Display has been seeking to overhaul its LCD business due to oversupply by Chinese companies and sharp declines in LCD panel prices. The company was leaning toward suspending production of LCD panels for TVs in 2020, but that idea was shelved as LCD panel prices began to surge.
LG Display plans to improve the competitiveness of its LCD business by differentiating its LCD panel products, rather than ending it. Specifically, the company has converted some of its TV panel production lines into IT equipment LCD production lines and will continue such conversions in the future. It will also cut production of LCD TV panels in half and focus on more profitable commercial and large-size products. LCD TV panels account for approximately 15% of the company's total sales revenue.
Concerned about the decline of LCD TV panels, LG Disp
Lay said it plans to ensure stability and mid- to long-term profitability by flexibly operating its P7 plants in Paju, South Korea, and Guangzhou, China.
LG Display had a strong performance in the second quarter amid the booming display industry. The company reported operating profit of 701.1 billion won in the second quarter of 2021, turning into a surplus. Sales increased by 31.3% compared with 2020, reaching 6.96 trillion won, exceeding market expectations.
Analysts predict further improvement in its third-quarter results. They predict that its large-scale OLED panel business will post a surplus for the first time, and its OLED panel shipments will climb in all business areas including TVs, IT equipment, and mobile devices.
Anna
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