LG Display publishes operation loss amidst coronavirus economy
LG Display, a company which supplies display panels to big smartphone vendors, including Apple, is reportedly also affected. Reuters reports that LG Display announces a decline in net profit. For the first quarter of 2020, which ended in March, the operating loss (when a company’s expenses exceed its profits) for the company amounted to around $294.70 million (362 billion Won). Additionally, the company’s quarter-by-quarter revenue decreased by 26%.
The decrease in LG Display’s revenue is due to the coronavirus pandemic, but also to seasonal changes which led to a reduction in sales of some of the more expensive products of the company.
“We expect volatility in demand to increase down the road, as industry sectors are impacted by the COVID-19 outbreak. The difficult situation will inevitably linger, although it is expected that demand in IT products will grow due to stay-at-home orders and consequent surge in online activities. We will do our best to continue to seize such business opportunities, including any increase in demand in IT products where LG Display has a competitive advantage, as well as to strengthen cash management by optimizing inventory and minimizing input of resources,” said Dong-hee Suh, CFO and Senior Vice President of LG Display, in a statement to the press.