LG Display recorded an ‘earning surprise’ in the 4th quarter of last year with its operating profit in excess of KRW600 billion, and its annual performance improved greatly as well. As its operating profit amounted to KRW1,357.3 billion last year, the figure exceeded KRW1 trillion for 2 consecutive years following 2013. It is attributed to the fact that, with the prices of TV panels on the rise last year, Apple, one of its key customers, released new products and thus LGD greatly increased its supply quantities.
LG Display (CEO Han Sang-beom) announced on January 28 that its sales amounted to KRW26,455.5 billion, and its operating profit KRW1,357.3 billion last year. Its sales declined by 2.1% from the previous year, but its operating profit went up by 17% over the previous year. Its net profit was KRW917.4 billion, up a whopping 119% over the previous year. It is because LGD concentrated on selling highly profitable high-value-added products.
LGD’s operating profit was able to exceed KRW1 trillion for 2 consecutive years because the strong sales of the iPhone 6 and iPhone 6 Plus, made by one of its key customers, Apple, helped improve the performance of LGD while the prices of large display panels for TVs are remaining at a high level. The G series, including LG Electronics’ strategic smartphone G3, was sold well in the North American market last year, which also helped improve its performance.
LGD’s quarterly sales were amazing too. In the 4th quarter of last year, its sales amounted to KRW8,341.9 billion, and its operating profit KRW625.8 billion. The company has been in the black for 11 consecutive quarters.
Its operating profit increased by 32% quarter on quarter (KRW474.1 billion), and by 114% year on year (KRW257 billion). It’s the best performance since the second quarter of 2010 (KRW726 billion). Its sales increased by 27% quarter on quarter (KRW6,546.9 billion), and by 18% year on year (KRW7,079 billion). Considering that the 4th quarter is the peak season for the display industry in general, this quarterly performance far exceeds market expectations.
LGD is planning to steadily build the infrastructure for the success of the OLED and reinforce its competitiveness as a global display leader by providing differentiated values for customers based on IPS and M+ in 2015 as well.
Meanwhile, LGD decided on a cash dividend of KRW500 per share in 4 years after 2011, and this cash dividend will be finalized after approval by the regular shareholders’ meeting in March.
Kim Sang-don, executive vice-president of LGD, said, “We expect that our profits will decrease in the first quarter of 2015 from the previous quarter due to seasonal factors, but we will make further efforts to improve our profitability by differentiating our technology and reducing costs.”