LGD Turns Profitable Amid Stay-at-Home Demand... OLED TV Performance Becomes Visible (Comprehensive)

[Asia Economy Reporter Suyeon Woo] LG Display achieved strong performance in the first quarter of this year, with sales increasing by 46% year-on-year and operating profit turning positive. The 'stay-at-home demand' caused by COVID-19 drove TV sales, and among them, the performance of OLED TVs became visible, contributing to the improvement in results.

On the 28th, LG Display announced that it achieved sales of KRW 6.8828 trillion and operating profit of KRW 523 billion in the first quarter of this year. Compared to the previous quarter, sales fell by 8% and operating profit 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.

Along with strong demand, LG Display explained that the rise in LCD panel prices expanded more than expected due to supply issues of parts within the industry, maintaining solid performance. By product, IT panels accounted for the largest share at 40%, TV panels accounted for 31%, and mobile panels accounted for 29% of sales.

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 is changing, expanding performance in the premium market. LG Display’s annual sales target for OLED TV panels this year is around 8 million units.

An LG Display official said, "We view the competitiveness of OLED TVs positively," adding, "We will closely review demand changes and market conditions until the third quarter and then decide on plans such as expanding additional production facilities."

The automotive display business, another future growth engine for LG Display, is also accelerating. According to an LG Display official, despite the COVID-19 pandemic last year, the order backlog for automotive displays reached USD 7.6 billion, and as of now this year, it has increased to USD 8.8 billion. Among these, the share of plastic OLED is about 30%.

An LG Display official said, "With the recent surge in electric vehicle sales, we expect more order opportunities for plastic OLED," adding, "The key is to nurture this as a core business for the company’s mid- to long-term future."

Regarding the shutdown plan for LCD panel production lines, LG Display expressed its intention to operate flexibly by maximizing the use of available resources. An LG Display official said, "The P7 LCD plant is operating in response to customer requests, and other plants are not shutting down but converting production lines to IT products," adding, "Considering market conditions, we plan to continue flexible operations by utilizing resources to the fullest."

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