LGD Reports 662.1 Billion KRW Loss in Q3... "Expecting Profit in Q4"

Reduced Deficit in Q3

LG Display announced its third-quarter business results on the 25th, with sales of KRW 4.7853 trillion and an operating loss of KRW 662.1 billion.

Although sales decreased by 29.33% compared to the third quarter of last year, the deficit was reduced by 12.80%. LG Display recorded an operating loss of KRW 759.3 billion in the third quarter of last year. Compared to the second quarter of this year, sales increased by 0.99%, and the deficit narrowed by 24.89%.

[Image source=Yonhap News]

The focus on advancing the business structure, continuous cost innovation, and operational efficiency activities contributed to reducing the loss scale compared to the previous quarter and the same period last year. The third-quarter net loss was KRW 775.4 billion, and EBITDA (earnings before interest, taxes, depreciation, and amortization) was KRW 382.2 billion (an 8% profit margin).

The sales ratio by product (based on sales) is 23% for TV panels, 40% for IT panels (monitors, notebook PCs, tablets, etc.), 28% for mobile panels and other products, and 9% for automotive panels. LG Display stated that it plans to focus its capabilities on strengthening core businesses in response to market demand and changes in the business environment, and improving the profit structure through company-wide continuous cost innovation.

In the large OLED sector, LG Display plans to further expand its position in the premium TV market and improve profitability through cost innovation such as strengthening the customer portfolio centered on extra-large products and reducing material costs of key components. In the small and medium OLED segment, it will maximize the use of expanded production capacity to actively expand mobile product shipments, while solidifying technological leadership in IT OLED and preparing for mass production and supply systems next year without any setbacks.

In the automotive display sector, LG Display is determined to achieve order and sales growth based on differentiated technological competitiveness encompassing tandem OLED and high-end LCD, thorough quality control, and stable supply capabilities. Kim Sung-hyun, LG Display CFO (Chief Financial Officer), said, “Despite the difficult market environment this year, we are focusing company-wide capabilities on business structure advancement and cost innovation to gradually improve profitability,” adding, “As panel inventory adjustments in the upstream industry ease and shipments of medium-to-large products and new mobile product panels increase to meet year-end peak season demand, we expect to return to profitability in the fourth quarter.”

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