Technology South Korea’s LG Display posts deeper second quarter loss on TV panel...

South Korea’s LG Display posts deeper second quarter loss on TV panel supply glut

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South Korea’s LG Display posts deeper second quarter loss on TV panel supply glut

South Korea’s LG Display Co Ltd (034220.KS) on Tuesday posted a deeper second-quarter operating loss that missed analyst estimates, as a global supply glut pushed down prices of screens for television sets.

The Apple Inc (AAPL.O) supplier’s operating loss for April-June was 369 billion won ($313.02 million) versus a loss of 228 billion won in the same period a year earlier. The result compared with analysts’ forecast loss of 268 billion won.

Revenue fell 5% to 5.4 trillion won.

Prices for LG Display’s main product, 50-inch liquid-crystal displays (LCDs) for TVs, slid as much as 7.5% in the quarter versus the same period last year, showed data from WitsView, part of research provider TrendForce.

Analysts said TV makers have stockpiled panels for fear of changes in import tariffs brought about by Sino-U.S. trade tension, creating rising inventories and growing supply glut in the display market.

“Set makers have been stocking up on panels in advance due to fears of a 25% tariff to be placed into effect in the third quarter, leading their panel inventories to pile up and resulting in conservative purchasing,” said analyst Iris Hu at TrendForce.

Earlier on Tuesday, LG Display announced a $2.6 billion investment in its organic light-emitting diode (OLED) panels production line in South Korea.

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