LG Display had a weak Q2 and as a result has decided to significantly reduce its investment plans in the period up to 2020, trimming the value of investments by KRW 3 trillion ($2.677 billion). (LG Display Sees Downturn) The company sees continued uncertainty about the development of the smartphone market.
Company CFO and executive VP Sang-Don Kim commented:
“Panel area shipments in the third quarter are expected to increase by a mid-single digit percentage, as upcoming favorable seasonality is anticipated to drive up the sales volume. As the trend of panel prices is expected to turn positive, we anticipate seeing an increase in some panel prices, which will depend on the supply and demand situation per panel size.
LG Display will invest KRW 3 trillion ($2.677 billion) less than originally planned by 2020 by adjusting the timing and amount of investment while continuing to speed up the shift toward an OLED-focused business in the mid and long term”.
Analyst Comment
At press time, it wasn’t completely clear where the axe would fall on the firm’s plans but the suggestion of the comments is that the cut will be in the LCD side where possible. (BR)
