[Concall] LG Display "Expecting Profit Turnaround in Second Half... Effect of Inventory Adjustment"

[Asia Economy Reporter Han Ye-ju] LG Display has forecasted a return to profitability in the second half of this year.

During the Q4 earnings conference call held on the 27th, LG Display stated, "Due to proactive inventory management activities implemented since Q4 last year, reduction in LCD TV production volume, and high-intensity production adjustments for OLED TV, we expect cost reductions on the order of 1 trillion KRW in Q1 this year," adding, "With the operation of new production lines for smartphone display panels, quarterly performance is improving, and a turnaround (return to profitability) is anticipated in the second half of the year."

They predicted a 'low in the first half, high in the second half' performance this year. Although demand weakness in the first half is inevitable due to unfavorable economic conditions, large-scale cost reductions are underway, and the inventory adjustment worth 1.6 trillion KRW in Q4 last year to minimize inventory burden is expected to have a positive effect, leading to sales expansion and a reduction in losses from Q2 onward.

Regarding investment, they said, "This year, we will proceed only with the minimum essential maintenance investments and order-based projects agreed upon with customers," adding, "We plan to execute CAPEX (capital expenditure) at around the 3 trillion KRW level this year."

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