South Korea’s leading display panel maker LG Display has fallen into the red for the first time in six years due to a fall in prices of liquid crystal display panels, according to its first-quarter earnings announced Wednesday.
The company said it posted 5.68 trillion won ($5.26 billion) in sales for the first three months of the year, while recording an operating loss of 98.3 billion won.
The last time LG Display recorded a loss was the first quarter in 2012.
“More rapid falls in LCD panel prices than expected and reduced shipments due to the seasonal effect led to about 20 percent decline in sales compared to a year earlier,” the company said.
The net loss for the quarter recorded 49 billion won.
The panel maker will take measures to cut costs and investments, implementing an emergency management plan.
“We have plans to adjust investment and cost plans by enforcing a strong level of emergency management.” said Kim Sang-don, chief financial officer of the company.
The executive vice president, however, highlighted that its portfolio adjustment toward organic light-emitting diode business is underway smoothly, with rising sales of OLED TVs.
“We will more focus on the OLED business with high expectations of demand growth for OLED TVs in the second quarter,” he said.
During the first quarter, sales of TV panels accounted for 43 percent of the total, data showed.
By Song Su-hyun (firstname.lastname@example.org)