LG Display

Performance Indicators

2018: Losses because of falling of the prices of displays and expenses on production of OLED panels

In 2018 the LG Display company earned 24.34 trillion wons ($21.8 billion) of revenue that is 12.4% less than an indicator of year prescription.

LG Display became unprofitable in many respects because of falling of the prices of displays. In 2018 net losses of the company reached 179 billion wons ($160 million) whereas in the 2017th profit equal to 1.94 trillion wons took place.

Financial performance of LG Display

Only in the first half of 2018 of LG Display missed 326 billion wons because the Chinese competitors increased production and strongly bate down the prices in the market, notes the Nikkei edition.^[1]

In addition to the cheapening displays, the companies prevent to be profitable heavy expenses on expansion of production of panels on the basis of organic LEDs (OLED). Such products in 2018 were shipped in number of 2.9 million pieces and brought to South Korean vendor to more than 20% of income.  Besides, for the first time in five years since the beginning of release of OLED displays the division, responsible for their production, completed year without losses.

In 2018 LG Display invested in OLED business development about 9 trillion wons (over $8 billion) against 5 trillion wons the previous year. About 80% of such expenses go for further improvement of OLED technology.

In day of the publication of annual accounts of quotation of LG Display sank for 4.2%. In 2018 actions lost 40% of cost how investors sold securities of the technology companies, being afraid of their reduction in cost because of trade war between the USA and China.

In LG Display consider that this opposition of the countries and also the surplus of panels will be led to further falling of the prices of screens.

The amplifying instability in world economy and the remaining trade disagreements between the USA and the People's Republic of China will continue to have negative effect on market conditions, said in the report of LG Display.

History

2019

LG Display in a year dismissed 12.4% of employees

At the beginning of April, 2020 it became known that LG Display in the 2019th cut down the staff for 12.4% from 30438 to 26665 people. Such digit contained in the annual report of the company as of December 31, 2019. Considering approach of an economic crisis, in the first months since the beginning of 2020 the company could dismiss still a quantity of employees.

Earlier the staff of LG Display the only time was reduced to value less than 30 thousand people — in 2009. Thus, in 2019 the size of the state decreased to the minimum value in 10 years.

LG Display in the 2019th cut down the staff for 12.4% from 30438 to 26665 people

One of the largest producers of panels has in 2020 hard time, even despite the promising direction of release of OLED displays with high marginality (in 2019 the company from 24% to 34% increased a share of such panels in the total amount of release of television screens). For the same time the production capacity of its lines of release of OLED panels increased from 69 to 79 thousand pieces a month.

Further growth is expected with start at full capacity of the OLED enterprise at the new plant of the company in the Chinese city of Guangzhou. In the subsequent LG, as well as Samsung, is going to refuse completely production of LCD displays to focus on more advanced technologies.

Plans for business development were ruined by a koronavirusny infection which spread worldwide sharply changed consumer moods and forced the governments to close retail stores hastily.

As a rule, such actions as the Olympic Games (they were planned for 2020 in Japan) and also presidential elections (are planned for 2020 in the USA) lead to growth of the global demand for TVs. However this time the expected effect on a root was destroyed by a large-scale disease.

According to forecasts of analysts of Omdia, in 2020 the world market of TVs will be reduced, and global deliveries of OLED TVs will grow by only 500 thousand pieces up to 3.5 million devices.^[2]

Chong Huo-yang is the new CEO of LG Display

In September, 2019 announced LG Display appointment as the new CEO Chong Huo-yanga who was the president and the operating officer of the LG Chem company specializing in production of rechargeable batteries before. Read more here.

2018

Reduction up to 65% of the state

At the end of September, 2018 it became known of the dismissals first in the history in LG Display. And the company intends to reduce the most part of number of staff.

As the representative LG Display told Reuters news agency, the company will liquidate working positions through the early retirement plan. It is noted that will voluntarily dismiss people, and the first statements will begin to be adopted in October, 2018.

LG Display for the first time reduces the staff. One of the largest producers of displays dismisses up to 65% of people

The South Korean newspaper Chosun Ilbo with reference to the message of LG Display writes that reductions will concern the workers occupied on production, and the total quantity of dismissed can reach 65% of all state. Add to the companies that by the end of September, 2018 the decision on the size of the program of personnel cleaning is not made yet.

According to the representative of LG Display, dismissal is the compulsory measure connected with use of automated systems and the growing production of screens on organic LEDs (OLED). Production of such displays requires less people, than for liquid crystal display panels.

Reductions on production will be partly compensated by employment of bigger number of engineers and R&D-специалистов, added to the companies.

LG Display in large quantities reduces labor power, despite concern for leakage of the personnel in the competing companies. In September, 2018 internal investigation during which the security service of the company looked for listening devices in meeting rooms and also tried to find people who could organize leak was made. It was not succeeded to reveal any proofs.

Reason for check was the incident which occurred several weeks before when confidential information "flowed away" from the headquarters nearly in real time.

The The Investor edition notes that many former employees of LG Display and Samsung Display are employed by the Chinese companies for work on OLED technology. Mass layoffs considerably increase risk of use of industrial espionage.^[3]

The announcement of the world's largest displaced display

At the CES 2018 exhibition (Las Vegas; On January 9-12) the South Korean company LG Display showed the biggest in the world the displaced screen. Its size is 65 inches on diagonal, and resolution capability —   3840 x 2160 pixels (4K of Ultra HD).

The OLED panel can be contracted and hidden when it is not used, and the small size of the twisted display means that it is easy to move and store it, helping it is better to use space. Any other screen so cannot, says LG Display.

The first TV with the 65-inch OLED panel rolled

The user presses  the button, and  the screen is involved in  a small support where it is turned in  several layers around an axis to save the place.

The 65-inch display capable to be rolled is shown in the form of the TV with the built-in audio system. Terms of the beginning of sales and cost of innovation are not disclosed by the producer.

In the long term on the basis of similar displays TVs of new generation which will be able to disappear in an interior of premises can be made, cleaning up, for example, in a small niche a wall.

LG Display does a big rate on products using technology of organic LEDs (OLED). By the beginning of 2018 it brings to the company about 10% of revenue, and to the 2020th is going to increase this indicator to 40%. By this time LG Display is going to invest about 20 trillion wons ($18.7 billion) in development and production of OLED screens, the head of LG Display Khan San bom reported (Han Sang-beom) during the performance at the CES 2018 exhibition.

At the end of 2018 the company to expect to sell 2.8 million large-size OLED displays. In 2020, according to plans of LG Display, sales of these products will be measured by 6.5 million pieces. For accomplishment of this purpose the company will construct in China the new enterprise by the end of 2019.^[4]

Notes