LG Display 1Q Operating Loss of 361.9 Billion KRW, Improved from Previous Quarter (Update)

[Asia Economy Reporter Changhwan Lee] LG Display announced on the 23rd that it recorded sales of 4.7242 trillion KRW and an operating loss of 361.9 billion KRW in the first quarter of this year.

Sales decreased by 20% compared to the previous year, and although the operating loss widened compared to the previous year, it slightly improved compared to the previous quarter.

In the first quarter, panel shipment area decreased compared to the previous quarter due to continued LCD (Liquid Crystal Display) TV fab reduction activities and production disruptions caused by the novel coronavirus disease (COVID-19).

Additionally, due to the seasonal off-season effect, the proportion of POLED products, which have a higher price per area, also decreased, resulting in an overall sales decline of 26% compared to the previous quarter.

Despite the significant sales decline, the operating loss slightly improved compared to the previous quarter (operating loss of 421.9 billion KRW). The increase in LCD panel prices and exchange rates were major factors in improving the deficit, and efforts to reduce material costs and minimize input expenses were also analyzed to have had an impact.

The net loss for the period was 198.9 billion KRW, and EBITDA was 630.5 billion KRW (EBITDA margin 13.3%).

In the first quarter of 2020, the sales proportion by product was 32% for mobile panels, which decreased by 4 percentage points compared to the previous quarter due to entering the seasonal off-season; TV panels accounted for 31%, notebook and tablet panels 20%, and monitor panels 17%.

LG Display's key financial indicators for the first quarter were a debt ratio of 186%, a current ratio of 91%, and a net debt ratio of 87%.

Seodonghee, Executive Vice President and CFO (Chief Financial Officer) of LG Display, stated, "The risks triggered by COVID-19 are expanding across all industries, and we expect demand volatility to increase going forward. Although a difficult phase is inevitably expected, demand for IT products is anticipated to increase due to remote work and online activities. We will maximize opportunities such as the expansion of demand for IT products where we have differentiated competitiveness, while minimizing inventory and resource input and strengthening cash management activities."

This content was produced with the assistance of AI translation services.