South Korean panel maker Lejin Electronics said that due to the recovery of liquid crystal display (LCD) prices before the end of the holiday holiday, profit growth in the third quarter was 76%, ending the loss in the second quarter, but it is difficult to continue to profit in the fourth quarter. . Lejin pointed out that the US-China trade war, protectionism and other factors will have an impact on the global panel industry.
LG Electronics believes that the prospect of the global display panel industry with a size of US$ 164 billion has been overshadowed by China's overcapacity, tariffs and protectionism.
Kim Don, executive vice president of LG Electronics, said: “The LCD market is expected to see double-digit growth in terms of supply, but in terms of demand, market volatility continues to expand, with huge uncertainties due to tariffs, trade conflicts and emerging The foreign exchange risk of the market is magnified. According to data released by IHS Markit earlier this month, in the large-size LCD panel unit shipments, LG Display is only behind China's BOE Technology, ranking second in the world.
In the third quarter, LG Display’s operating profit reached 140 billion won ($123.2 million), which was better than the market estimate of 79 billion won. The loss for the second consecutive quarter was mainly due to the seasonal increase in LCD panel prices and revenue. It fell 12% to 6.1 trillion won. Data provider WitsView said that the price of LCD TV panels in August 50 rebounded from a record low of June to $117 per piece from $109.
As Chinese players are investing in the LCD panel market and miscalculating panel prices, LG Display has made the worst plans for future market conditions, is cutting employee-related benefits, and will launch a staff retreat program.