LG Display made a record operating loss of 876 billion won in the fourth quarter.

CTOnews.com January 27 news, South Korean display panel manufacturer LG Display on Friday announced December 2022 and the fourth quarter of the operating report. LG said global demand for smartphones, computers and TVs remained subdued due to uncertain economic prospects. Therefore, the operating loss in the fourth quarter reached a record 876 billion won (about 4.818 billion yuan), compared with a profit of 476 billion won in the same period last year.

LG Display said in a statement that the loss was due to the continued decline in mid-size panel prices, as well as "high-intensity" efforts to control inventories and reduce plant operations.

Analysts said lackluster demand from large European customers for large-scale organic light-emitting diode (OLED) TV panels with higher margins, as well as laptop and display makers, had further weighed on demand. LG Display said revenue fell 17 percent to 7.3 trillion won.

Analysts predict the monitor maker will continue to post operating losses this quarter as companies cut jobs to tide over lower consumer spending. In addition, LG Display said last month that it would stop producing liquid crystal display (LCD) TV panels in South Korea to weather the economic downturn.

CTOnews.com has reported that the monitor maker has implemented voluntary furloughs for a small number of workers and some production staff.

Analysts say the company is also reducing LCD panel production in China and adjusting factory utilization for OLED panels on its flagship TVs.

LG Display said it plans to strengthen its customisation business to improve stability in the face of uncertain market conditions, increasing its share of sales to 50 per cent by 2024 from 30 per cent currently.

The company accounted for its large size OLED panel business as a separate division in the fourth quarter, reflecting asset losses of 1.3 trillion won, resulting in a quarterly net loss of 2.1 trillion won.