LG Electronics ran its TV manufacturing factory at around 75 percent in the first quarter of 2023, the company said on Monday, amid slowing demand for home entertainment products.
Reducing production capacity in response to lower demand to manage costs and avoid excess inventory. After making losses for the past three consecutive quarters, LG’s TV business made a turnaround in the first quarter, thanks to improving TV demand in Europe, LG’s biggest OLED TV market, and decreasing inventory levels and marketing costs.
LG Electronics said in a regulatory filing the rate came in at 75.3 percent for the three months ending in March, the lowest since March 2015 when the corresponding figure was 68.1 percent, reports Yonhap news agency.
Meanwhile, LG operated its manufacturing facilities for electric vehicle (EV) components at a record high of 99 percent, up from 88.2 percent in the same period last year.
LG’s EV business reported an all-time high of 54 billion won (US$40.3 million) in operating profit in the first quarter.
It also said the value of orders for its electric vehicle component solutions, such as in-vehicle infotainment systems and headlamps, has reached a cumulative 80 trillion won amid the explosive growth of electric vehicles.
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