LGD Reports 1.0984 Trillion KRW Loss in Q1... Largest Deficit Ever (Update)

by Park Sunmi

Published 26 Apr.2023 13:49(KST)

LG Display recorded the largest quarterly loss in its history in the first quarter of this year.

[Image source=Yonhap News]

On the 26th, LG Display announced that it posted sales of 4.4111 trillion KRW and an operating loss of 1.0984 trillion KRW. Sales decreased by 40% compared to the previous quarter and by 32% compared to the same period last year. Operating profit turned to a loss in the first quarter of this year from a profit of 38.3 billion KRW in the first quarter of last year. Compared to the operating loss of 875.7 billion KRW in the fourth quarter of last year, the deficit widened by about 200 billion KRW.

Weak demand centered on TV and IT products and intense inventory adjustments in the upstream industry continued from the fourth quarter of last year into the first quarter of this year. In addition, seasonal off-season effects led to a decrease in product shipments and sales. The reduction of the LCD TV business for business structure advancement also impacted sales.

The sales proportion by product in the first quarter (based on sales) was 19% for TV panels, 38% for IT panels (monitors, notebook PCs, tablets, etc.), 32% for mobile panels and other products, and 11% for automotive panels.

The net loss for the period was 1.1531 trillion KRW, and EBITDA (earnings before interest, taxes, depreciation, and amortization) recorded a loss of 80.2 billion KRW.

LG Display plans to continue advancing its business structure centered on ‘order-based business’ that can stably manage volume and pricing through close collaboration with customers, focusing its capabilities on strengthening differentiated competitiveness and preparing for the future. It expects to turn profitable from the second half of the year, starting from the first half’s low point, due to the recovery of inventory health across the industrial ecosystem and the expansion of order-based business performance.