LG is assuming the worst-case scenario with the global economic downturn and is set to cut TV panel production immediatly said Kwon Young-soo, the CEO of the world’s No.2 LCD TV maker. In Australia LG will next week launch a new 50″ plasma TV with built in PVR and storage along with a new Blu ray player.
Kwon Young-soo said ” With the financial sector crisis hurting it will be “very difficult going forward. There will be output cuts.The flat panel market could recover from the second quarter of next year when oversupply eases” he said.
Earlier this week LG Display reported a 44 percent drop in third-quarter net profit to $245 million. Although the number came above expectations, analysts remain worried about the industry’s outlook as the sluggish economy hits demand for flat TVs and personal computers.
AP said that some analysts expect LG Display to swing to losses in the first half of next year.
“I hope things will get better from the second quarter,” Kwon said. “Around June next year, the oversupply should be over.”
He said he also expected demand for small-sized flat-screen TV sets to rise as the weak economy leads consumers to pick smaller and cheaper models.