LG Display Broken Wrist, intends to cut LCD capital expenditure

Smartphone market conditions are not good, Apple panel supplier LG Display in order to stop the loss of blood, decided that the strong man broke his wrist, hacking to 2020 capital expenditure plan of 2.7 billion US dollars.

LGD's demand for TV and mobile phones was sluggish, and panel prices fell. In the second quarter, revenue shrank 15% to 5.6 trillion won, and net loss was 3.05 billion won, showing a loss for the second consecutive quarter.

LG Display Finance Minister Don Kim said at the telephone law conference that the market for the mobile market is unclear, and capital expenditures are now conservative, but this does not affect the plan to accelerate the transfer of LCDs to OLEDs, which means being cut down. Capital expenditures are concentrated on the LCD business. (Reuters)

LGD expects that the third quarter OLED panel is expected to start to make a profit, but since LCD panels still account for more than 90% of LGD's revenue, the replacement process is bound to drag down financial performance.

In addition, LG Display is also worried about the impact of the Sino-US trade war, and will adjust the panel output in South Korea and China depending on the situation.

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