LG cuts investment plans as losses mount
SEOUL (Agencies): South Korea’s LG Display Co Ltd, a key Apple supplier, slashed its investment plans by $2.7 billion to 2020 citing concern for the global smartphone market, as it posted a second consecutive quarterly loss on sagging panel prices.
The cut underscores the bleak outlook for electronics makers and comes a week after another Apple Inc supplier, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), also scaled back its revenue and investment estimates.
LG shares tumbled 7 percent versus the broader market’s 0.3 percent fall after it flagged faster-than-expected panel price declines and an uncertain outlook.
LG said it would trim investment by 3 trillion won ($2.7 billion) from what was planned by 2020, without revealing its total or previous capex targets. It also warned that it could adjust production in South Korea and China in response to trade disputes between Washington and Beijing.
The investment cut would not impact plans to “speed up the shift” from LG’s mainstay liquid crystal display (LCD) business toward next-generation organic light-emitting diode (OLED) panels, the company