[Digital Times, Kim Eun] LG Display`s first operating loss was recorded in the first six months of the year.

The company said it will pursue `emergency management` that focuses on OLED display panel business by converting some production lines of domestic liquid crystal display (LCD) into organic light emitting diode (OLED) production line.

On April 25, Kim Sang Don, vice president of CFO of LG Display, stated, "We will concentrate our efforts on OLED TV panels, which have been performing well, in a conference call.”

He added, "We plan to convert OLED production capacity of existing Paju plant to OLED factory in accordance with additional demand and market reaction in Guangzhou 8.5G LCD factory in Guangzhou, China, which will start mass production in the second half of 2019."

LG Display expects OLED to account for a large portion of its TV panel business this year. OLED panel sales accounted for only 10% of total TV panel sales last year, but this year it is expected to increase to mid 20%.

Mr. Kim also said, "The number of OLED customers will also increase to 15 this year." We expect the supply shortage of OLED panels to continue for the time being. "

Meanwhil, Mr. Kim said, "We will reduce the size of LCD current investment," and "We will also strongly promote emergency management by flexibly adjusting the production capacity of POLED (plastic substrate OLED)." We will reduce our reliance on LCD panels, our mainstay sales product, and concentrate on high-margin OLEDs. POLED is expected to grow in demand for automotive electronics and for foldable smart devices.

Asked whether he would supply LCD panels to Samsung Electronics, he said, "As you know, we started LCD business with Samsung Electronics," he said. However, when asked about whether to supply OLED panels to Samsung Electronics, he said, "It is difficult to meet all demand because there is a limit to the supply of OLED panels."

"The decline in LCD TV panel prices is expected to stabilize in the second quarter," he said. However, the industry is likely to increase LCD panel supply by Chinese display companies, so LG Display is unlikely to regain profitability for the time being.

The company said, "We do not consider fund raising such as a separate rights offering. We have accumulated financial strength for the past five to six years, so we have sufficient funding in the market."

Meanwhile, LG Display achieved the annual operating profit of 2 trillion for the first time last year. However, the company posted an operating loss of W98.3bn in 1Q12 and turned to deficit for the first time in six years. Sales in the first quarter were 5,675.3 billion won, down 19.6% from the same period last year.


By Kim Eun silverkim@


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