LG Display Narrows Losses... Q1 469.4 Billion → Q2 93.7 Billion

Achievements in Business Structure Advancement Including Mass Production of OLED for IT
Sales Reach 6.7082 Trillion Won, Up 41.6%
Effective Products Include 'Tandem OLED' Supplied to Apple

LG Display significantly reduced its deficit by achieving results in business structure advancement, including mass production of organic light-emitting diode (OLED) panels for information technology (IT) applications in the second quarter of this year.

LG Display announced on the 25th that it recorded sales of KRW 6.7082 trillion and an operating loss of KRW 93.7 billion in the second quarter of this year. Compared to the same period last year, sales increased by 41.6%, and the operating loss decreased by 89.4%. Previously, the securities industry had expected LG Display’s operating loss to exceed KRW 200 billion in the second quarter following KRW 469.4 billion in the first quarter, but this forecast was overturned.

The recently supplied 'Tandem OLED' for Apple iPad Pro and the OLED panels for iPhones scheduled for release in the second half of the year appear to have played a key role. The full-scale mass production of IT OLEDs, expansion of large OLED production, and a favorable exchange rate are also evaluated to have had a positive impact.

Shipments increased across all product groups including TV, IT, mobile, and automotive, with the proportion of OLED products rising to 52%, up 10 percentage points from the same period last year, which contributed to the sales increase, LG Display explained.

The sales composition by product was 24% for TV panels, 44% for IT panels (monitors, notebook PCs, tablets, etc.), 23% for mobile panels and other products, and 9% for automotive panels.

LG Display has set a goal to turn profitable in the second half of this year by gradually reducing losses and strengthening OLED competitiveness. The company plans to continue advancing its business structure by enhancing competitiveness centered on OLED and expanding the proportion of high value-added products. Additionally, by improving operational efficiency, it aims to increase responsiveness to market conditions, secure a stable profit structure, and focus on creating differentiated customer value.

Looking at each business division, the large OLED business plans to strengthen its position in the premium TV market by expanding a differentiated, high-end product lineup through close collaboration with customers, continuously enhancing product competitiveness, and pursuing cost innovation to secure profitability. The small and medium OLED business division plans to actively utilize enhanced production capabilities for mobile OLEDs to expand panel shipments compared to the previous year and increase market share in the high-end segment.

Currently, LG Display supplies OLED panels for both the 11-inch and 13-inch models of the new iPad Pro and is known to supply OLED panels for two models in the iPhone 16 Pro lineup, including the Pro and Pro Max, scheduled for release in the second half of the year.

The automotive business will continue to expand order volume and customer base based on differentiated products and technological competitiveness such as Tandem technology-based P (plastic) OLED, ATO (Advanced Thin OLED), and high-end LTPS (low-temperature polycrystalline silicon) LCDs, as well as solid customer relationships.

Kim Sung-hyun, CFO (Chief Financial Officer) of LG Display, said, "We are improving performance and strengthening financial stability compared to the previous year through business structure advancement, cost structure improvement, cost innovation, and operational optimization activities. Although market and external environmental volatility will continue in the second half, we will continue to expand the results of business structure advancement and maintain the performance improvement trend through operational efficiency."

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