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LG Display suffers third consecutive loss

by Mark Tyson on 24 April 2012, 15:58

Tags: LG Display, Samsung (005935.KS)

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In financial news today LG Display announced a consecutive third quarter loss of $113 million. LG is the world’s second largest supplier of LCD displays, behind fellow South Korean electronics giant Samsung. The company has made barely any profit since 2010 saying it has been hurt by slow television sales due to the recession.

LG profitsLG were optimistic about the foreseeable future, citing the upcoming Olympics and Euro 2012 championship events. Such sporting events usually help spur new TV sales. Also contributing to the losses were the lowering of prices of large flat panels due to weak demand.

Sales of screens to Apple for the new iPad didn’t reverse LG Display’s fortunes this quarter. LG has reportedly struggled to make displays for the new iPad, as has Sharp, leaving Samsung as the sole supplier in the first quarter.

In the next quarter, sales of the new iPad are expected to be about 19 million units. Ming-Chi Kuo at KGI Securities says Samsung will remain main supplier of the iPad screen because of LG and Sharp’s production difficulties. However Yoo Jong-Woo, of Korea Investment & Securities said “In the second quarter, LG Display's panel shipments for the new iPad will be about 8 million units and the revenue from that is expected to come in at about 800 billion won ($700 million)”. These figures would give LG Display an estimated second-quarter operating profit of 113.8 billion won ($100 million).

LG Display has lost so much money since the third quarter 2010 despite news that factories were running at full capacity in the latter half of 2010. Looking at the analyst figures above it would seem that producing smaller high definition screens is currently where the money is at, however this area of business brings in just 20 per cent of LG Display’s revenue. The other 80 per cent of revenue is from TV, computer and laptop displays.

HEXUS Forums :: 8 Comments

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Uncle bought a LG TV. Just after a year, it died. Their reliability is poor.
Thats a very poor sweeping statement :P, you personally had a tv die which is always annoying but it happens. All my LG products still live on, TV is over 4 years old now (sold and still going!) and my gran bought a 32" LG tv and its 3 years strong now.

Price vs performance LG destroy, their new tvs seem to keep up with the really expensive samsung displays :). LG also seem to sell a crap load of tvs so just a 0.1% faliure rate could equate to a tangible amount of failures (as with samsung sony etc).

Hopefully LG pick it up this year as i always like their stuff and we need them to push the passive 3d, its the only tech id accept as it doesnt kill my brain :D.
Demand for television panels remains flat.

Love my LG TV personally, would recommend them. Got just about every feature I need, just missing the PVR via a USB drive to be perfect.
Uncle bought a LG TV. Just after a year, it died. Their reliability is poor.
I'm surprised by that - I'd always heard that LG TV's were more reliable, but less feature-rich, than their Samsung competitors. When we were shopping for a new TV, the LG stuff we looked at had a better picture than the Samsung ones alongside. Although eventually we got a Sony Bravia (better picture sharpness and colours than anything else). ;)

I've got an LG monitor myself and it's shockingly poor - which is why I was fast to enter that recent Hexus monitor competition (which I didn't win). It's the first, and will be the last, LG monitor that I buy.
Bought an LG TV recently and it is great, I really do prefer the passive 3D displays, picture is amazing and the price was a steal.