LG Drastically Cuts Spending for 2012

Posted Wed Aug 31, 2011 at 07:30 AM PDT by Dick Ward

LG also says there are no plans to build more LCD plants.

The LCD market is in a rough spot right now. Companies like Samsung, Sony, and LG are dramatically lower in sales than they were last year at this time, and there aren’t any immediate signs of improvement.

The folks at LG have felt the pinch, and they’re adjusting to the new market by cutting costs severely. They’re spending $2.8 billion in 2012, which sounds like a lot until you consider that it’s a 33 percent decrease from last year.

That’s a pretty big cut and it certainly gives credence to the idea that the bottom may be dropping out of the LCD market. CFO James Jeong disagrees. He says things will turn around next year.

Source: Engadget

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Tags: High-Def Retailing, Industry Trends, LCD TVs, LG (all tags)