LGD Turns Operating Profit Positive... "Benefiting from Home Economy and Rising LCD Panel Prices" (Update)

[Asia Economy Reporter Suyeon Woo] LG Display announced on the 28th that it achieved sales of 6.8828 trillion KRW and an operating profit of 523 billion KRW in the first quarter of this year.

Compared to the previous quarter, sales decreased by 8% and operating profit fell by 24%, but compared to the same period last year, sales increased by 46% and operating profit turned positive.

Despite the first quarter being a typical seasonal off-season, demand for large panels such as TVs and IT products continued to be strong due to the home economy trend. On the other hand, shipments of mobile products decreased, causing sales to decline compared to the previous quarter.

LG Display explained that along with strong demand, the rise in LCD panel prices expanded more than expected due to supply issues within the industry, maintaining solid performance.

Net profit was 265.8 billion KRW, and EBITDA (1.62 trillion KRW) margin remained in the 20% range at 24%, continuing from the previous quarter. By product, IT panels accounted for the largest share at 40%, TV panels 31%, and mobile panels 29%.

In particular, the OLED TV segment continued strong sales by recording shipment volumes in the first quarter, a seasonal off-season, at levels comparable to the peak season (fourth quarter). This is because consumers are spending more time at home due to COVID-19, and their perception of the value of TVs has changed, expanding performance in the premium market. LG Display’s annual sales target for OLED TV panels this year is around 8 million units.

In the mobile segment, the strategy is to focus capabilities on solidifying the turnaround foundation by smoothly preparing for mass production of new products based on enhanced internal operational stability such as yield and quality. For the IT segment, LG Display officials explained that they plan to thoroughly prepare in advance to firmly establish market leadership and continuously generate profits based on strengthened production capabilities and close customer relationships even in the post-COVID era.

Seodonghee, Executive Vice President and CFO (Chief Financial Officer) of LG Display, said, "As consumers’ lifestyles have changed due to COVID-19, the essential and differentiated value of OLED is being more clearly recognized by customers and end consumers," adding, "We will closely monitor market changes after the COVID-19 vaccine rollout and respond swiftly to opportunities."

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