LG Display Turns to Profit with 33.5 Billion Won Operating Income in Q1

Sales Reach 6.0653 Trillion Won, Up 15% Year-on-Year
Expansion of OLED Product Shipments and Cost Innovation Initiatives

LG Display posted a profit in the first quarter of this year. This is attributed to the increased proportion of its OLED (organic light-emitting diode) business and the industry's "stockpiling of components" in response to the tariff policies of the Trump administration.

On April 24, LG Display announced that its consolidated sales for the first quarter of this year reached 6.0653 trillion won, with an operating profit of 33.5 billion won. Although the first quarter is typically a low season with declining display demand, the company explained that its efforts to restructure around OLEDs have yielded results, allowing it to post a profit for the second consecutive quarter following the fourth quarter of last year.

LG Display booth set up at 'IMID 2024'. LG Display

Sales increased by 15% year-on-year, driven by expanded shipments of OLED products for TVs, IT, and mobile devices, as well as favorable exchange rates. OLED products accounted for 55% of total sales, up 8 percentage points from the same period last year. In addition, LG Display turned a profit by improving sales by more than 500 billion won during the same period through intensive cost reduction and operational efficiency initiatives.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 1.2313 trillion won (with a margin of 20%), marking the highest margin since the third quarter of 2021. By sales, the product breakdown was as follows: ▲ TV panels 22% ▲ IT panels (monitors, laptops, tablets, etc.) 35% ▲ Mobile panels and other products 34% ▲ Automotive panels 9%.

LG Display plans to enhance its business competitiveness by focusing on OLEDs, while continuously pursuing cost innovation and operational efficiency to maintain a stable profit structure.

For the small- and medium-sized business segment, the company aims to further strengthen its position in the high-end market based on its technological competitiveness. For mobile OLEDs, it plans to expand shipments by enhancing core competitiveness in quality and cost, leveraging stable supply capabilities. For IT displays, LG Display intends to solidify its technological leadership in tandem OLEDs, which offer excellent durability and performance such as low power consumption, long lifespan, and high brightness. At the same time, it aims to improve profitability by providing products optimized for customer needs in each product segment through differentiated high-end LCD (liquid crystal display) technology.

For the large-sized business segment, the completion of the sale of the Guangzhou large-scale LCD plant has enabled the company to focus on further developing its OLED-centered business structure. LG Display plans to expand its lineup of differentiated products, such as fourth-generation OLED TVs and gaming monitors optimized for the AI era, through close collaboration with global customers.

In the automotive business, the company aims to solidify its position as the global leader and establish a stable profit structure with a differentiated product and technology portfolio, including tandem technology-based P (plastic)-OLED, ATO (Advanced Thin OLED), and high-end LTPS (low-temperature polycrystalline silicon) LCDs.

Kim Sunghyun, CFO of LG Display, stated, "Although external uncertainties persist, we are seeing results from our focus on strengthening fundamental competitiveness. We will strive to achieve a full-year turnaround to profitability and expand its scale through business structure advancement and operational efficiency."

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