LG Display posts steep loss for 2019

The South Korean display panel maker suffered an operating loss of 1.36 trillion won for the full year of 2019.

1lg-8k-tv.jpg

Image: LG Electronics

LG Display reported an operating loss of 1.36 trillion won for the full year of 2019.

Net loss amounted to almost 2.9 trillion won while revenue fell 4% to 23.5 trillion won, the South Korean display panel maker said.

For the fourth quarter, LG Display reported an operating loss of 422 billion won, going from being in the black into the red over the span of a year.

The steep decline was caused by the downturn in the LCD market coupled with restructuring costs.

Profitability was further aggravated by increased costs for the production of plastic OLEDs aimed at mobile devices, the company said.

See also: LG's 2019 profit saved by home appliance business

LG Display said it expects "meaningful improvements" in the second half of 2020 however, as its factory in China -- that produces OLED display panels -- will expand production and contribute to more sales. 

The company CEO previously told reporters at CES that the company expects to ship 6 million OLED TV panels in 2020.  

The mobile OLED arm of LG Display, meanwhile, has secured a "strategic customer base" and will contribute to profits going forward, it added.    

LG Display didn't name its client but it is a likely reference to Apple, which has increasingly adopted more OLED panels for its iPhones.

For LCDs, the company said it plans to focus on those aimed at mobile, automobile, and commercial applications, while major sporting events such as the upcoming Olympic Games may help stabilise pricing throughout the year. 

RELATED COVERAGE

LG V50 ThinQ 5G review: A dual-display 5G flagship

LG's V50 ThinQ 5G is a 5G smartphone with a difference: it comes with a hinged cover that incorporates a second screen. If this doesn't appeal, you'll probably want to look elsewhere.

LG's new TV panel: You can roll it down from the ceiling

Ahead of this year's CES, the South Korean manufacturer unveils a fresh take on its range of rollable displays.

LG hones focus on AI car platforms with Cerence and Luxoft

While LG continues to grow in the automotive sector, it's also eyeing expansion plans in the commercial space.

CES 2020: LG CEO says mobile business will turnaround in 2021

Its OLED TV that can roll upwards will also be launched no later than the third quarter of 2020, LG Electronics CEO says.

Flying in style: You could be watching a 65-inch OLED TV on your next flight thanks to LG Display (TechRepublic)

At CES 2020, LG Display showed TechRepublic several use cases for its latest OLED displays in the retail, automotive, and airline industries.