LGD Returns to Profit After 7 Quarters... "Strengthening Growth Base in TV, Mobile, and Car"

"Securing Financial Soundness" Defensive Remarks Shift to "Focusing on Profitability" Aggressive Statements
Expansion of Large, Small-Medium, and Vehicle Portfolios

LG Display has succeeded in turning a profit after seven consecutive quarters of losses. The company plans to focus on diversifying its portfolio across TV, IT·mobile, and automotive businesses while securing profitability. Having passed the critical phase of strengthening financial soundness, it is now committed to expanding its profit margins.

On the 24th, LG Display announced that its preliminary consolidated sales for the fourth quarter of last year reached KRW 7.3959 trillion, with an operating profit of KRW 131.7 billion. The operating profit marked a return to profitability after seven quarters since Q2 2022. For the full year, the company recorded sales of KRW 21.3308 trillion and an operating loss of KRW 2.5102 trillion.

The company emphasized the significance of the quarterly results, particularly the return to operating profit. LG Display stated, "The results of business structure advancement have become visible, with an increased proportion of high value-added products centered on OLED." It added, "Profitability improved through continuous implementation of rigorous cost reduction activities such as cost innovation and operational efficiency." Regarding the 55% increase in Q4 sales compared to the previous quarter, the company explained, "Shipments of mobile OLED panels and medium-to-large products for TV and IT increased," and "TV and IT product groups were influenced by seasonal demand expansion."

Jung Cheol-dong, CEO of LG Display, held a press conference with reporters at the LG Display exhibition hall ahead of the opening of 'CES 2024,' the world's largest electronics and IT exhibition, held in Las Vegas, USA, on the 8th (local time).
[Photo by Yonhap News]

Notably, the company expressed its intention to enhance growth drivers by strengthening future growth foundations and securing profitability. This marks a shift from the previous six quarters of emphasizing 'financial soundness' during losses. Kim Sung-hyun, LG Display’s Chief Financial Officer (CFO), stated, "We will focus on creating customer value and securing profitability by strengthening OLED business competitiveness and future growth foundations."

LG Display plans to dramatically strengthen competitiveness and business foundations across all OLED business areas, including large-size, IT, mobile, and automotive sectors. In the large OLED segment, the company intends to expand shipments by reinforcing its customer base and pursue cost innovation in yield (good product ratio), productivity, and material costs. The strategy is to strengthen its premium market position centered on large and extra-large OLED TVs. In the small and medium OLED segment, LG Display will continuously expand order-based business and enhance business competitiveness. For mobile OLED, the company plans to steadily increase product shipments based on expanded OLED production capacity.

In the automotive display sector, LG Display aims to grow its customer base and drive order and sales growth by leveraging technological competitiveness in tandem technology-based P-OLED, ATO (Advanced Thin OLED), and high-end LTPS LCD. LG Display stated, "Since the first mass production of automotive OLED in 2019, we have secured 10 global premium automaker brands as customers within four years."

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