LG Display swings to profit in Q3 with W250.6b operating income

LG Display returned to profitability in the third quarter, reversing an operating loss of 107.7 billion won in the previous quarter.

The company posted consolidated sales of 6.28 trillion won ($4.74 billion) and operating profit of 250.6 billion won for the third quarter, it announced Thursday. Operating profit, however, fell 42 percent from the same period a year earlier.

Sales rose 12 percent quarter-on-quarter as large and mobile OLED product lines entered their seasonal peak, driving higher shipments. On a year-on-year basis, sales declined 10 percent, reflecting a deliberate reduction in mid-sized LCD shipments as part of the company's strategy to focus on higher-margin products.

Operating profit improved from the prior quarter despite headwinds from a weaker won-dollar exchange rate and component price inflation, as the company continued to expand its share of high-value-added OLED products and push operational efficiency gains.

EBITDA came in at 1.21 trillion won, representing a margin of 19 percent, reflecting steady underlying performance. Net profit for the period reached 755.6 billion won, boosted by a sharp improvement in foreign-currency translation gains as the exchange rate fell at the end of the quarter.

LG Display said it plans to continue upgrading its OLED-centered business structure and build a stable, sustainable earnings base through differentiated technology and cost innovation.

In the small and mid-sized segment, the company aims to strengthen its high-end product lineup by leveraging its technology leadership and reliable development and production capabilities. The mobile division will consolidate its market position through technology competitiveness and stable supply capacity, while the IT division will focus on improving profitability by concentrating on high-value products and sharpening cost competitiveness.

In the large-display segment, LG Display plans to lead the premium market on the strength of its proprietary OLED technology. For TV OLED panels, the company will enhance the competitiveness of its premium lineup while also offering price-competitive products to meet diverse customer needs. For monitor OLED, it will expand its market presence by broadening its gaming OLED lineup built on proprietary technology.

Meanwhile, LG Display is investing in first-in-class technology that competitors cannot easily replicate, as it seeks new growth engines. The company recently succeeded in developing FLIPP, a next-generation OLED patterning technology, and said it will continue to translate its proprietary capabilities and accumulated expertise into tangible business results.

Kim Sung-hyun, chief financial officer of LG Display, said the company had focused on strengthening business competitiveness and operational efficiency "amid continued uncertainty in the external business environment, including exchange rate fluctuations and component price volatility, in the third quarter as well." He added that the company would "continue to pursue differentiated technology competitiveness and cost innovation to enhance our resilience to external changes and further solidify our foundation for stable earnings generation."