The LCD maker has reported a 62 percent drop in its third-quarter profit citing slowing demand for televisions and computer monitors, which forced it to drive down panel prices and in turn decrease the lack of profit.
The company said its net income dropped to $198 million (224.2 billion won) from $528 million (595.3 billion won) a year earlier. The flat-screen maker also saw an operating profit of $161 million (182.06 billion won), down from $587 million (662.18 billion won) a year earlier.
Its panels for television accounted for 58 percent of its shipments, while computer monitors and screens for laptop computers accounted for 19 percent and 15 percent of its products, respectively.
However, according to an analyst the company shouldn’t be wallowing to much.
“We were expecting to see figures a lot worse than this considering the market and the high amount of competition in LCD market,” an analyst from Displaysearch told Techeye.
However, he predicted that there would be more trouble ahead.
“Panel prices will remain under pressure for the rest of the year and LG may continue to struggle. However, with Christmas coming up it could see a slight turnaround.
“It’s important to note that manufacturers will also have to keep their prices in line with the competition as well as try to reduce their production costs to succeed in this saturated market,” he warned.