According to Reuters, Korean panel manufacturer LG Display Co Ltd. (LGD for short) lost money for the second consecutive quarter and cut its investment budget due to weak demand for tablets, TVs and smartphones due to inflation and the negative economic outlook.

LGD said that due to the war between Russia and Ukraine and the energy crunch, technology product manufacturers have significantly reduced their inventories in Europe. In addition, affected by consumer sentiment, the market in the main sales regions of organic light emitting diode (OLED) TVs has deteriorated rapidly.

According to the previous financial report released by LGD, the operating loss in the third quarter was 759 billion won (about 5323.1 million dollars), while the profit in the same period last year was 529 billion won. Previously, 12 analysts surveyed by Definitiv Smart Estimate predicted an average loss of 474 billion won.

LGD said in a regulatory document that its revenue would drop by 6% to 6.8 trillion won, and it planned to cut its investment budget in 2022 by more than 1 trillion won, and flexibly operate its OLED production line to meet demand.

The company said that the sluggish demand for liquid crystal display (LCD) and OLED panels slowed down shipments in the third quarter, and some panels are expected to last until the second half of next year.

KB Securities analysts said that due to the production adjustment of panel manufacturers, LCD panel prices stabilized in October, but due to weak demand, LGD is expected to continue to lose money in this quarter.

LGD said in July that it would stop producing LCD TVs in South Korea next year.