FILE PHOTO: A person walks out of the headquarters of LG Show in Seoul, October 20, 2011. REUTERS/Jo Yong-Hak/File Photograph
SEOUL (Reuters) – LG Show Co Ltd, a South Korean Apple Inc provider, reported on Thursday its fifth straight quarter of working losses, hit by slumping demand for smartphones and televisions as a result of coronavirus pandemic.
The working loss for the primary quarter ended March widened to 362 billion gained ($294.70 million) from a lack of 132 billion gained a yr earlier, and compares with a Refinitiv SmartEstimate drawn from 19 analysts for a 390 billion gained loss.
LG Show’s income fell 20% to 4.7 trillion gained.
“We expect volatility in demand to increase down the road, as industry sectors are impacted by the COVID-19 outbreak. The difficult situation will inevitably linger, although it is expected that demand in IT products will grow due to stay-at-home orders and consequent surge in online activities,” LG stated in an announcement.
Analysts say though liquid crystal show (LCD) panel costs within the business rose when manufacturing was disrupted in China on the peak of the coronavirus outbreak there, the worth will increase have been shortlived as Chinese language rivals had resumed manufacturing, contributing to a provide glut out there.
Costs for LG Show’s most important product, 50-inch LCDs for tv units, rose a bit greater than 1% within the quarter from the earlier quarter, in accordance with knowledge from WitsView, a part of analysis supplier TrendForce.
In an effort to stem losses, LG Show has stated it’s going to halt home manufacturing of LCD TV panels by the top of this yr.
Samsung Show, a unit of Samsung Electronics Co Ltd, stated final month it’s going to finish all manufacturing of LCD panels by the top of this yr.
The outcomes have been launched after the South Korean inventory market closed on Thursday. LG Show’s share worth has fallen greater than 33% this yr up to now, in contrast with a 12% fall within the benchmark index.
Reporting by Heekyong Yang and Hyunjoo Jin; Modifying by Muralikumar Anantharaman