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LG Display Suffers 19% Revenue Decline In Q2 Due To China's COVID Lockdown, Demand Shrinkage

Benzinga · 07/27/2022 13:24
  • LG Display Co, Ltd (NYSE:LPLreported a second-quarter FY22 revenue decline of 19% year-on-year to KRW 5.61 trillion.
  • Operating loss was KRW (488) billion. The EBITDA decreased 62.6% Y/Y to KRW 662 billion. 
  • The company saw a decrease in panel shipments in the quarter due to China's prolonged COVID lockdown and a shrink in industry demand affected by the market's increasing macro volatility and uncertainties. 
  • China's lockdown had a particularly disruptive impact on set makers and partner companies, leading to supply chain disruption. 
  • In addition, the continuous decline in LCD panel prices contributed to the company's performance.
  • In its large-sized OLED business, LG Display will further strengthen its position in the premium market and accelerate new businesses in the Life Display sector.
  • Regarding the IT display sector, LG Display will focus on the premium market.
  • For the small-sized OLED business, the company will respond to the rising demand for smartwatches and supply new smartphone models in the year's second half.
  • For the automotive display sector, LG Display plans to offer differentiated solutions with the goal of exceeding 30% market share in the next three years.
  • LPL seeks to accelerate its plan to reduce its LCD TV panel business and concentrate more on high-end IT products.
  • Price Action: LPL shares traded higher by 0.61% at $5.76 on the last check Wednesday.