LG Display reported its financial results for Q1 2020. LGD's revenues were 4.7 trillion Won ($3.8 billion USD), decreased 26% from the previous quarter and 20% from Q1 2019. The company's net loss in the quarter was 199 billion Won ($161 million USD).
LGD's revenues and earnings were below analysts expectations - the company's business was hit by the Covid-19 pandemic which caused lower demand for smartphones and TV panels (which were also hit due to the postponing of major sporting events). LCD panel prices have also taken a hit.
LGD says that its Guangzhou OLED TV fab will start mass production in Q2 2020 - but full capacity production will be "subject to the market situation" - which means that the company may (for the first time?) not utilize its entire OLED TV panel capacity.
Analysts are cutting their forecast of OLED TV sales in addition to mobile p-OLED sales. CLSA estimates that LGD will ship 21 million pOLED panels in 2020 (down 20% from earlier estimates) as demand for smartphones is falling. CLSA sees 4.5 million OLED TV shipments in 2020 (Omdia expects only 3.5 million OLED TV panels in 2020).