LG Display Reports 30 Percent Slump in Quarterly Profit 5c5c6b Hit by Lower TV Prices

LG Display posted an operating profit of KRW 476 billion (roughly Rs. 2,975 crore) for the October-December quarter, down from 678 billion a year earlier. 165f

By Reuters | Updated: 27 January 2022 13:11 IST

LG Display shares ended down 0.7 percent versus the wider market's 0.4 percent fall 6l6j16

Highlights

LG revenue rose 18 percent to KRW 8.8 trillion (roughly Rs. 55,020 crore)
LG posted operating profit of KRW 476 billion (roughly Rs. 2,975 crore)
Shipments of advanced organic light-emitting diode (OLED) s jumped

ment

South Korea's LG Display on Wednesday reported a 30 percent drop in quarterly operating profit as a one-off cost related to profit-sharing plan and lower TV prices offset solid shipments of smaller screens for computers, laptops and smartphones.

The Apple supplier posted an operating profit of KRW 476 billion (roughly Rs. 2,975 crore) for the October-December quarter, down from 678 billion a year earlier.

It missed an average analyst forecast of KRW 588 billion (roughly Rs. 3,675 crore) compiled by Refinitiv SmartEstimate. LG Display said that excepting a year-end one-off cost involving sharing profits with executives and employees, its result was in line with market expectations.

LG Display Rides Pandemic-Led Demand for TVs, Laptops to Beat Q2 Estimates

Revenue rose 18 percent to KRW 8.8 trillion (roughly Rs. 55,020 crore).

During the quarter, prices of 55-inch liquid crystal display (LCD) s for TV sets fell 37 percent from the previous quarter, market data from TrendForce's WitsView showed.

However, only 27 percent of its sales came from television s during the quarter, analysts noted.

LG Display Rides Pandemic-Led Demand for TVs, Laptops to Beat Q2 Estimates

Solid shipments of high-end LCD s for notebooks and monitors, whose prices declined by less than LCD TV prices in 2021, as well as higher-margin OLED s for smartphones and TVs, should LG's results this year, analysts said.

LG Display said its shipments of advanced organic light-emitting diode (OLED) s jumped more than 70 percent in 2021 and the display maker reached break-even in its OLED business.

"The stay-at-home demand for notebooks, tablets and other devices is expected to gradually fall as COVID-19 lengthens and distancing rules ease," said Kwon Jae-young, vice president and head of medium-small display marketing division.

"However, back-to-office and corporate demand from gradually improving economies is expected to increase, so overall demand for such devices in 2022 is expected to remain similar to 2021."

LG Display shares ended down 0.7 percent versus the wider market's 0.4 percent fall.

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