10.27.21
LG Display reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2021.
Revenues in the third quarter of 2021 increased by 7% to KRW 7,223 billion ($6.19 billion) from KRW 6,738 billion ($5.77 billion) in the third quarter of 2020 and increased by 4% from KRW 6,966 billion ($6 billion) in the second quarter of 2021.
Operating profit in the third quarter of 2021 recorded KRW 529 billion ($453 million). This compares with the operating profit of KRW 164 billion ($140 million) in the third quarter of 2020 and with the operating profit of KRW 701 billion ($600 million) in the second quarter of 2021.
LG Display saw a year-on-year increase of 7% in revenues and a quarter-on-quarter increase of 4%, due to the increased shipments of its panels for IT products. The company’s year-on-year operating profit increased by 222%. However, its quarter-on-quarter operating profit decreased by 25% due to falling LCD TV panel prices, an increase in material costs due to the industry’s component shortage, and an increase in costs from the ramp-up of new facilities.
Panels for IT devices accounted for 45% of the revenues, panels for TVs accounted for 32%, and panels for mobile devices accounted for 23%.
LG Display’s large-sized OLED business continued to strengthen its position in the market as the premium TV sector continues to grow. In this regard, the company expects to achieve the annual sales goal of 8 million OLED panels and record annual profit this year. LG Display also saw stable results in the LCD business sector based on its differentiated high-end products and technology along with strengthened partnerships with strategic customers, as it shifted its LCD business structure to focus on the IT sector
which helped minimize market fluctuation.
The panel shipments in the fourth quarter are expected to increase by mid-10% compared to the third quarter, with the delayed shipments affected by the industry’s component shortage predicted to return to normal.
"LG Display has successfully managed to build the stable business structure that helps it minimize market fluctuation while generating profits by pre-emptively shifting capacity toward competitive IT products and strengthening cooperative partnerships with strategic customers,” said Suh Dong-hee, CFO and SVP of LG Display. “Based on this, we will continue to generate profits through differentiated IT and Commercial products down the road.
“The global TV market is actually showing signs of polarization due to the expansion of the high-end TV market, though it is seemingly getting smaller,” Dong-hee added. “It is predicted that OLED TV sales will continue to grow with the rise of high-quality content and consequently consumers’ increasing willingness to spend more on high performance TVs.”
Revenues in the third quarter of 2021 increased by 7% to KRW 7,223 billion ($6.19 billion) from KRW 6,738 billion ($5.77 billion) in the third quarter of 2020 and increased by 4% from KRW 6,966 billion ($6 billion) in the second quarter of 2021.
Operating profit in the third quarter of 2021 recorded KRW 529 billion ($453 million). This compares with the operating profit of KRW 164 billion ($140 million) in the third quarter of 2020 and with the operating profit of KRW 701 billion ($600 million) in the second quarter of 2021.
LG Display saw a year-on-year increase of 7% in revenues and a quarter-on-quarter increase of 4%, due to the increased shipments of its panels for IT products. The company’s year-on-year operating profit increased by 222%. However, its quarter-on-quarter operating profit decreased by 25% due to falling LCD TV panel prices, an increase in material costs due to the industry’s component shortage, and an increase in costs from the ramp-up of new facilities.
Panels for IT devices accounted for 45% of the revenues, panels for TVs accounted for 32%, and panels for mobile devices accounted for 23%.
LG Display’s large-sized OLED business continued to strengthen its position in the market as the premium TV sector continues to grow. In this regard, the company expects to achieve the annual sales goal of 8 million OLED panels and record annual profit this year. LG Display also saw stable results in the LCD business sector based on its differentiated high-end products and technology along with strengthened partnerships with strategic customers, as it shifted its LCD business structure to focus on the IT sector
which helped minimize market fluctuation.
The panel shipments in the fourth quarter are expected to increase by mid-10% compared to the third quarter, with the delayed shipments affected by the industry’s component shortage predicted to return to normal.
"LG Display has successfully managed to build the stable business structure that helps it minimize market fluctuation while generating profits by pre-emptively shifting capacity toward competitive IT products and strengthening cooperative partnerships with strategic customers,” said Suh Dong-hee, CFO and SVP of LG Display. “Based on this, we will continue to generate profits through differentiated IT and Commercial products down the road.
“The global TV market is actually showing signs of polarization due to the expansion of the high-end TV market, though it is seemingly getting smaller,” Dong-hee added. “It is predicted that OLED TV sales will continue to grow with the rise of high-quality content and consequently consumers’ increasing willingness to spend more on high performance TVs.”
