LG Display Reports 1Q 2022 Results

LG reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending March 31, 2022.

Revenues in the first quarter of 2022 decreased by 6% to KRW 6,471 billion ($5.15 billion) from KRW 6,883 billion in the first quarter of 2021 and decreased by 27% from KRW 8,807 billion ($7 billion) in the fourth quarter of 2021.

Operating profit in the first quarter of 2022 recorded KRW 38 billion ($30 million). This compares with the operating profit of KRW 523 billion in the first quarter of 2021 and with the operating profit of KRW 476 billion ($380 million) in the fourth quarter of 2021.

EBITDA in the first quarter of 2022 was KRW 1,211 billion, compared with EBITDA of KRW 1,620 billion ($964 million) in the first quarter of 2021 and with EBITDA of KRW 1,645 billion in the fourth quarter of 2021.

The company saw a decrease in panel shipments in the quarter due to low seasonality and a shrink in industry demand, as well as a continuous decline in LCD panel prices. In addition, the unexpected supply chain conditions caused by China’s COVID lockdown affected the company’s panel production and shipments.

Panels for TVs accounted for 26% of the revenues in the first quarter, while panels for IT devices including monitors, laptops, and tablets accounted for 48%, and those for mobile devices and the others accounted for 26%.

LG Display will further strengthen its capabilities to handle possible crisis even under growing market uncertainties to minimize any effects of external factors, while focusing on boosting its performance in its competitive OLED and high-end LCD businesses.

In its large-sized OLED business, LG Display will continue to lead the growing premium TV market based on its unmatched and differentiated values of OLED technology, expecting a rise in OLED panel shipments, as well as in profits, starting from the second quarter.

LG Display plans to apply its OLED.EX technology to all OLED TV panel series in the second quarter. The company’s new OLED.EX increases brightness by 30% by applying deuterium technology and personalized algorithms to organic light emitting devices, which are the most important elements of creating OLED’s excellent picture quality. The company also aims to expand its Gaming, Transparent, and Portable OLED businesses in the Life Display areas.

Despite the overall TV market’s 10% quarter-on-quarter decline, OLED TVs continued to lead the growing premium TV market, recording above 40% increase in OLED TV sales in the first quarter.

LG Display will improve its performance in the mobile sector with its OLED products by expanding the supply of its new products in the second half of 2021, as well as focusing more on high-end products down the road. Additionally, the company will strengthen its leadership in the automotive sector with its OLED products to further secure the premium market. Meanwhile, in the LCD sector, the company will strategically focus more on its competitive profitable high-end IT products.
 
“Although the market is anticipated to fluctuate from macroeconomic uncertainties and supply chain issues, we will continue to strengthen our capabilities to handle potential crisis and closely monitor market changes to preemptively respond to them,” said Kim Sung-hyun, CFO and SVP at LG Display. “Despite the overall slowdown in demands, the growth of high-end IT product market and the premium TV market continue to pose a great opportunity for us. We will continue to increase our performance throughout the second half of the year by focusing on high-end IT products and by expanding our OLED shipments.”