LGD's OLED TV panel business Q3 is profitable for the first time

- Oct 24, 2018-

It is reported that South Korean display manufacturer LG Display (LGD) recently said that its OLED TV panel business has achieved profit for the first time since it began production five years ago.

 

At the time of the announcement of third-quarter earnings, LGD said its revenue for the quarter reached 140.1 billion won ($123 million). In the first two quarters of 2018, there was a continuous loss, while in the third quarter, it achieved a revenue of 6.1 trillion won.

 

According to relevant data, the rise in LCD panel prices in the third quarter and the industry's strong demand for high-end products such as OLED displays are the main factors for the company's profitability. Especially in the field of OLED TVs, LGD sold 1.7 million panels, up from 200,000 in 2013.

 

However, operating income and sales in the third quarter both fell sharply year-on-year, down 76% and 12% respectively.

 

Market analysts said that the decline in global LCD market prices and oversupply is one of the main reasons for the decline in profits.

 

The fierce competition brought by Chinese LCD manufacturers such as BOE has also put tremendous pressure on LCD. In the first half of 2018, BOE LCD TV panel shipments reached 25.6 million units, making it the world's largest LCD panel manufacturer. The LCD business accounts for nearly 90% of LGD's sales.

 

Lee Seung-woo, an analyst at investment firm Eugene Investment & Securities, said: "In view of global economic uncertainty and unpredictable demand for OLED TV panels in the coming year, although LGD may turn into profit in the second half, next year There may be losses again in the first half of the year."

 

LGD said it will go all out to develop the next-generation display business. Kim, the chief financial officer of LGD, said: "The company is currently at the crossroads of strategic shift from LCD to OLED."