LG Display posts bigger-than-expected Q3 loss on sluggish device sales - Yahoo Finance

By Joyce Lee and Heekyong Yang

SEOUL (Reuters) - South Korean flat-screen shaper LG Display Co Ltd posted its 2nd consecutive quarterly nonaccomplishment and chopped its concern budget, arsenic soaring ostentation and a gloomy economical outlook dealt a further stroke to request for TVs and smartphones.

Tech gadget makers made ample cuts to inventory and user sentiment successful Europe - a cardinal income portion for integrated light-emitting diode (OLED) TVs - worsened rapidly owed to the Russia-Ukraine warfare and vigor crunch, the institution said.

The Apple Inc supplier posted an operating nonaccomplishment of 759 cardinal won ($532.31 million) for the September quarter, compared to a nett of 529 cardinal won a twelvemonth earlier.

It missed an mean forecast of a 474 cardinal won nonaccomplishment from 12 analysts polled by Refinitiv SmartEstimate.

Revenue fell 6% to 6.8 trillion won, LG Display said successful a regulatory filing. It plans to chopped its 2022 concern fund by much than 1 trillion won and flexibly run its OLED accumulation lines to lucifer demand.

Sluggish request for liquid crystal show (LCD) and OLED panels, which dragged down shipments during the 3rd quarter, is expected to proceed until the 2nd fractional of adjacent twelvemonth for immoderate panels, the institution said.

Prices of 55-inch LCD panels for TV sets fell 13% successful the 3rd 4th from the preceding quarter, according to information from TrendForce's WitsView.

LCD sheet prices stabilised successful October acknowledgment to accumulation accommodation by sheet makers, but LG Display is expected to widen losses into the existent 4th due to the fact that of anemic demand, said Jeff Kim, an expert astatine KB Securities.

The institution said successful July it would halt LCD TV accumulation successful South Korea by adjacent year.

"Under the blimpish stance that mediocre absorption show whitethorn beryllium prolonged...we volition accelerate our exit from the LCD TV sector," said LG Display Chief Financial Officer Sunghyun Kim told analysts connected Wednesday, without providing an updated timeline.

In 3rd quarter, the institution derived astir 9% of its gross from LCD TVs, a spokesperson said.

LG Display has been successful the reddish since the 2nd quarter, erstwhile it logged its archetypal quarterly operating nonaccomplishment successful 2 years arsenic a pandemic-driven request roar for location amusement devices ended abruptly amid rising ostentation and involvement rates.

Shares successful LG Display closed down 1.1% aft the net effect portion the wider marketplace roseate 0.7%.

($1 = 1,425.8500 won)

(Reporting by Joyce Lee & Heekyong Yang; Editing by Jacqueline Wong, Clarence Fernandez and Jamie Freed)