LG Display Reports First Quarter 2020 Results

LG Display reported unaudited earnings results based on consolidated K-IFRS for the three month period ending March 31, 2020.

Revenues in the first quarter of 2020 decreased by 26% to KRW 4,724 billion ($3.84 billion) from KRW 6,422 billion ($5.21 billion) in the fourth quarter of 2019 and decreased by 20% from KRW 5,879 billion ($4.77 billion) in the first quarter of 2019.

Operating loss in the first quarter of 2020 recorded KRW 362 billion ($290 million). This compares with the operating loss of KRW 422 billion ($343 million) in the fourth quarter of 2019 and the operat-ing loss of KRW 132 billion in the first quarter of 2019 ($107 million). Net loss in the first quarter of 2020 was KRW 199 billion ($162 million).

EBITDA in the first quarter of 2020 was KRW 630 billion ($512 million), compared with EBITDA of KRW 586 billion ($476 million) in the fourth quarter of 2019 and with EBITDA of KRW 679 billion ($551 million) in the first quarter of 2019.
and KRW 362 billion in operating loss in the first quarter of 2020.

The revenue decrease of 26% quarter on quarter was driven by low seasonality, which led to a reduc-tion in sales of products with high ASP(Average Sales Prices) per square meter, such as P-OLED prod-ucts. In addition, the company’s panel area shipments decreased quarter on quarter due to its contin-ued move toward the structural improvement of the LCD business as well as a production setback caused by the COVID-19 outbreak.

Panels for mobile devices accounted for 32% of the revenue in the first quarter of 2020, 4% down from the previous quarter due to the low seasonality. Panels for TVs accounted for 31%, while those for tab-lets and notebook PCs accounted for 20% and desktop monitors for 17% respectively.

“We expect volatility in demand to increase down the road, as industry sectors are impacted by the COVID-19 outbreak. The difficult situation will inevitably linger, although it is expected that demand in IT products will grow due to stay-at-home orders and consequent surge in online activities. We will do our best to continue to seize such business opportunities, including any increase in demand in IT prod-ucts where LG Display has a competitive advantage, as well as to strengthen cash management by opti-mizing inventory and minimizing input of resources,” said Dong-hee Suh, CFO and SVP of LG Display.