In the fourth quarter, operating profit of KRW 685.5 billion… “Improved OLED performance under the influence of Corona 19”
“Shipment target of 7-8 million OLED panels this year…P-OLED performance will also improve significantly”
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(Seoul = Yonhap News) Reporter Kim Chul-seon = LG Display[034220]The company announced on the 27th that the consolidated operating loss for the last year was 29.1 billion won, which was significantly reduced from the previous year (operating loss 1.35 trillion won).
Last year’s sales amounted to 24.21 trillion won, an increase of 3.2% from 2019 (23,4756 billion won).
Operating profit for the fourth quarter was KRW 6855 billion, which turned into a black compared to the same period last year (operating loss KRW 421.9 billion). LG Display, which has suffered a deficit for six consecutive quarters since the first quarter of 2019, succeeded in turning into a surplus in the third quarter of last year, and continued a surplus in the fourth quarter.
Operating profit in the fourth quarter increased 317% from the previous quarter (164.4 billion won) and exceeded the market forecast of 377.4 billion won by Yonhap Infomax by 81.6%.
In the fourth quarter, sales were 7.46 trillion won, an increase of 16% compared to the same period last year and 11% compared to the previous quarter.
The company continued strong demand for TV and IT products due to the spread of home culture due to Corona 19, and the shipment area compared to the previous quarter was 5 due to the increase in large organic light-emitting diode (OLED) TV and plastic (P)-organic light-emitting diode (OLED) shipments. It explained that the sales price per area increased by 12%, boosting sales.
As for the increase in operating profit, it was interpreted that the results of three strategic tasks, such as the popularization of OLED, the strengthening of the P-OLED business base, and the LCD structure innovation, which LG Display has been focusing on, along with the solid shipment and sales price flow, were gradually revealed.
LG Display evaluated that “significant performance improvement was achieved through the expansion of OLED TV panel sales due to the full-scale production of the Guangzhou OLED plant and the increase in production based on the stable operation of the P-OLED business.
In addition, it also revealed that LCDs for IT and TV are contributing to profit improvement.
In terms of sales by division, IT panels accounted for the highest 37%, TV panels accounting for 29%, and mobile panels and other sales accounting for 34%.
In the fourth quarter, net income was 621 billion won, and Evita (EBITDA, operating profit before corporate tax, interest, depreciation and amortization) reached 1.7 trillion won. As operating profit improved, Evita’s margin also increased sharply, reaching 24%, the highest level in the 15th quarter.
LG Display’s CFO (Chief Financial Officer) Seo Dong-hee said about the 4Q results, saying, “Achievements achieved by maximizing opportunities in the market and expanding sales in the OLED division while responding promptly to the untact and non-face-to-face market environment.” Explained.
In a conference call on the day, Mr. Seo said, “OLED TV panel shipments in the fourth quarter of last year increased by 50% over the previous year to 1.6 million units,” and said, “With Corona 19, OLED’s intrinsic value in terms of image quality and eye health was highlighted, and this year 7 million. We are aiming to ship ~8 million units,” he said. He mentioned that if OLED panel shipments are expected to exceed 8 million units this year, expansion of the Guangzhou plant can also be considered.
The domestic TV LCD panel production, which was once decided to withdraw, reiterated its policy to flexibly respond to the recent rise in LCD panel prices.
“If Chinese competitors’ 10G factories are in full swing, the LCD panel supply and demand situation will improve from the second half of this year and prices will fluctuate,” he said. “We plan to flexibly respond within the range of current manpower and production capacity without additional resources.” said.
Regarding P-OLEDs used in small products such as smartphones, “There were concerns that we could compete with competitors in terms of stable quality, cost, and yield, but we operated stably last year.” “This year, there will be a significant improvement over the previous year. It will be.”
Seo said, “When looking at the flow of the third and fourth quarters of last year, many of the factors that had been difficult in terms of profit and loss have been resolved, and the efforts of members have laid the foundation for a turnaround.” “I evaluated.
LG Display predicted that demand for TV and IT products will remain relatively sound despite seasonal effects in the first quarter of this year. Although the shipment area will be similar to the previous quarter, it is predicted that the average selling price per area will fall to the level of the high-single-digit level, resulting in a slight decrease in sales.
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2021/01/27 17:45 sent